It's 2024, and according to TikTok, quiet luxury is out and something called "loud budgeting" is now officially in.
Personal finance nerds (me) are rejoicing.
It all started with TikToker Lukas Battle's (@lukasbattle) video highlighting his 2024 ins and outs. In the video, which has been viewed over a million times, Lukas proclaims, "Out: quiet luxury. In: loud budgeting. Sorry, can't go out to dinner. I've got $7 a day to live on."
And people in the comments had such a strong response to his pithy prediction that Lukas made a second video (also viewed over a million times so far) digging deep into the concept of loud budgeting.
In the follow-up video, Lukas explains, "Loud budgeting is a new concept I'm introducing for 2024. It's the opposite of quiet luxury. But if you know any rich people, you know that they hate spending money so it's almost more chic, more stylish, more of a flex."
He goes on, saying, "Loud budgeting has the same feeling as sneaking candy into a movie theater. You feel like you got away with something. You feel like you're on an adventure; you feel like you're coming out of the situation winning. It's not 'I don't have enough,' it's, 'I don't want to spend.'"
I love this distinction. It makes loud budgeting less about deprivation and more about deciding what's actually important to you when it comes to your spending.
He also suggests that loud budgeting could have an impact that's bigger than your individual bank account. "Let's send a message to corporations about the national inflation level. Let's take a stand."
Speaking of inflation: In the US, inflation peaked in 2022 at an average rate of 9%. As of November, it's down to a closer-to-normal 3.1%. The Fed hopes to bring this number even lower, to 2%.
However, prices on many everyday goods remain high (and don't even get me started on housing), so the average person is likely still feeling the painful effects of a few years of rising prices.
Finally, he says that while quiet luxury was all about idolizing celebrities and the lifestyles of the 1%, loud budgeting is about lifting up regular people. He says, "Celebrities or entertainers, they're here to entertain us. They're clowns really. And think about it, medieval peasants didn't ask the jester with a bum knee for a photo after their courtroom fart."
It definitely makes more sense to shape your lifestyle around people with similar means to yourself, rather than constantly trying to keep up with the Kardashians (sorry).
And in the comments, people chimed in with their own takes on what loud budgeting means to them:
Shout those deals from the rooftops!!
Is spending money an ick now? Please discuss.
And some of us have been loud budgeting for years without knowing what to call it:
