Learn more about loud budgeting and money dysmorphia
Money dysmorphia persists, impacting many individuals who may be unaware of its presence. Social media, particularly platforms like Instagram, significantly influences the financial choices of young people, who might feel compelled or pressured to conform to a specific lifestyle.
Recently, a study has reemerged, indicating a heightened obsession among young individuals with the pursuit of wealth.
What is money dysmorphia?
In a 2013 study conducted by Qualtrics for Intuit Credit Karma, money dysmorphia was defined as having a distorted perception of one’s finances, potentially leading to poor decision-making.
According to the survey, 59% of Millennials and 48% of Gen Z acknowledged struggling with their financial goals. Experts pointed to the influence of social media, where the portrayal of a lavish lifestyle played a significant role.
The pressure on 22-year-olds to showcase vacations on the Amalfi Coast, own Louis Vuitton bags, and possess an HGTV-worthy kitchen before earning such luxuries has been fueled by social media. Consequently, some Gen Z individuals are addressing this issue in 2024 by actively engaging in the latest TikTok trend of vocalizing their budgeting efforts.
What is loud budgeting
The novel concept of loud budgeting has emerged as a contrast to the idea of quiet luxury, as highlighted by TikToker Lukas Battle in a viral clip with over 1.4 million views. According to Battle, rich individuals often dislike unnecessary spending, making loud budgeting more chic, stylish, and a noticeable flex.
He urges viewers to convey a message to corporations regarding the national inflation level and take a stand. The essence of this trend, he explains, is not about lacking funds but rather a conscious decision not to spend. Drawing a comparison, Battle likens the money trend to the satisfaction one feels when successfully sneaking candy into a movie theater, creating a sense of having cleverly avoided unnecessary expenses.
It’s all about being humble and being proud of it
In the past, social media served as a platform for young individuals to showcase their financial achievements, flaunting luxurious purchases and boasting about various experiences.
However, there has been a noticeable shift in money-related posts, particularly on platforms like TikTok. The focus has now shifted towards humility and frugality, with users proudly embracing this new loud budgeting trend. This approach, gaining popularity among Gen Z, involves openly discussing and adhering to financial limits, avoiding the projection of false prosperity and unaffordable consumer goods.
Loud budgeting is a combination of philosophy and practicality, encouraging honest and transparent living within one’s income constraints. The trend reflects a desire for authenticity, with many believing that by rejecting overconsumption and consumer debt, they can manage their finances responsibly, save for the future, and still enjoy life. In essence, loud budgeting is seen as an empowering approach to personal finance.
Why is the loud budgeting trend going viral?
The TikTok generation has embraced this concept for its distinctiveness. There’s a notable element of surprise when individuals openly declare their commitment to avoiding even modest expenditures. Loud budgeting aligns with the principles of a minimalist lifestyle, including trends like ‘van life’ and tiny homes, as well as environmentalism and a focus on making conscientious purchases.
Learn more about loud budgeting and money dysmorphia counclusion
The loud budgeting trend reinforces the idea that it’s acceptable to set financial goals and make necessary sacrifices to achieve them. With challenges like high interest rates, inflation, and the resurgence of student loan payments, many in Gen Z are grappling with obstacles in their savings journey.
Having been enticed by social media influencers showcasing expensive products and experiences throughout their lives, this generation is now shifting their mindset. Instead of succumbing to the pressure of keeping up with extravagant trends, people are openly admitting, “I simply can’t afford it, and that’s okay.”
As they reach an age where financial peace becomes a priority, many are astounded by the steep costs involved. Social media platforms provide a public space for individuals to share and support this sentiment.
