A new financial trend amongst Gen Z is on the rise on TikTok, and it is loud, literally!
Loud Budgeting
Loud budgeting is the practice of being open and honest with those around you about your financial priorities.
For example, if an individual is saving up for the down payment on a home, they would explain why they cannot go out to an expensive restaurant with their friends since their top priority is home ownership.
A Social Shift
While being transparent with one's financial situation is a departure from the traditional American mindset of previous generations, it is a positive development.
All too often, the urge to splurge arises from social pressure. If individuals can remain committed to their budgetary constraints and stick to their financial plans despite peer pressure, that is better for everyone's financial future.
However, when being financially disciplined, it is essential not to alienate friends and family.
Find The Sweet Spot
We often connect with others by going out to eat or to social events. While some budgetary considerations may require austere cuts to your discretionary income, try not to limit yourself so much that you are only living for the future.
Often, extreme budgeting cuts that feel like deprivation will only lead to relapsing to one's prior habits, and there is little point in saving for the future if you cannot enjoy the present. After all, our money habits do not radically change overnight. If you cannot enjoy spending money now and only feel comfortable pinching pennies, it will be difficult to change that behavior.
I have splurged and been cheap over the years, and neither is sustainable or ideal. Instead, I suggest crafting a budget that allows for pleasure now and in the future that feels comfortable. Notably, comfortability differs for each person, so don't let one person's budget guide yours!
Do You Need Help Budgeting?
If you need help crafting a budget or financial plan, Lundeen Abrams Advisors is here to help. We regularly help clients of various socio-economic backgrounds plan for a better future.
If you are ready to start discussing financial plans and budgets, please give us a call to schedule an appointment. We will look forward to talking to you soon!