If you’re not budgeting big, are you budgeting right?  TikTok has thoughts, but so do money professionals

If you’re not budgeting big, are you budgeting right? TikTok has thoughts, but so do money professionals

TikTok may not be the first place that comes to mind when you think about finances, but it has millions of creators offering thoughts – some questionable, some good – on the topic. One that is trending now is the concept of “noisy budget”. While it initially appears to have started as a joke (see this post by Lukas Battle, which has over 200,000 likes), the “noisy budget” is garnering a lot of buzz now.

It’s an approach to personal finance that involves creating a budget and communicating it (out loud) to help you commit to it. Here’s how it might work: Let’s say you’re invited to a dinner (which you could go to) but you choose not to go because you choose to spend your money on other things; Instead of making an excuse to hide why you’re not going to dinner, you’d decline the invitation by saying it’s not in your budget, explains Bobbi Rebell, founder of Financial Wellness Strategies.


In other words, “It’s essentially permission to decline an invitation that has a price tag attached to it, with the sole reason of wanting to save the money for something else,” says certified financial planner Kenneth Robinson of Practical Financial Planning.

Battle jokes that a big budget is the opposite of “quiet luxury,” a term that became popular last year to refer to understated elegance and refined consumption. “If you know rich people, you know they hate spending money, so it’s almost more chic, more elegant, more flexible,” Battle jokes in the TikTok video. “It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend.’

But it works? Pros have mixed reviews. Rebell says it can be effective for some people. “If you weren’t budgeting loudly, you might go and blow your budget, or you would refuse but make up an excuse like a conflict or say you don’t feel well. This way you make your choice public and say you are proud and in no way hide the fact that this is not where you spend your money,” says Rebell.

Certified financial planner Marguerita Cheng at Blue Ocean Global Wealth also says there could be value in the trend. “Personal finance is just that, personal. I think it’s helpful to communicate why you’re more intentional with your spending, and there’s also an aspect of accountability,” says Cheng.

Others aren’t so sure it’s very effective. “The idea seems to be that by making your goals public, you are more likely to stick to them. Personally I find this to be something of a social media gimmick. I’m all for people staying disciplined in their savings and spending habits. However, I question whether or not making your intentions public via social media adds real value,” says certified financial planner Joe Favorito at Landmark Wealth Management.

And Robinson, author of “Don’t Budget: Why It’s So Hard to Save Money and What to Do About It,” says: “It’s not important to be transparent about your spending habits. It’s important to set boundaries and not let others, including your friends, violate them.” He adds: “The idea of ​​a strong budget highlights the importance of spending with intention, which is the opposite of mindless spending. For me the value lies precisely in this,” explains Robinson.

There are also numerous financial tools available online or through financial companies that can provide you with the framework to create a successful financial plan without making your private life public, says Favorito. Working with a financial planner can help you get a holistic view of your finances, including goals, budget, expenses, investments, tax planning and more. (You can use this free tool to meet with a financial advisor who may meet your needs.)


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