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Loud budgeting for dummies: 101 on the Internet's new money-saving trend

Loud budgeting for dummies: 101 on the Internet's new money-saving trend

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With rising prices, layoffs and a volatile economy, social media now has a new trend: Loud budgeting. 

Considering that this is a trend meant to focus on financial transparency and protecting one's spending, marketers could be led to believe that this is something that goes against their goals. However, the trend is much bigger than that. Below, MARKETING-INTERACTIVE breaks down what loud budgeting really is and how marketers can leverage it successfully. 

What is loud budgeting?

Loud budgeting was a term coined by TikTok Lukas Battle. In a video, he said that loud budgeting is not saying "I don't have enough" but rather, saying "I don't want to spend. 

"If your friend texts you, asking if you want to hang out, you say I don't want to spend gas money on coming to hear you to talk about your ex for three hours," explained Battle.

"It's the opposite of quiet luxury...You feel like you're on an adventure. You feel like you are coming out of a situation winning," he said, adding that using the trend, people could send a message to corporations about the national inflation levels.

"Loud budgeting is about the every day person," he said. 

Don't miss: Study: Only 12% of Singaporeans own and use cryptocurrency

Should brands jump on the trend?

According to Kimberley Olsen, co-founder of Yatta Workshop, the fact that the term was coined by a comedian, but that social media reinvented it to become a whole new movement gives brands much room for opportunities.

The point of loud budgeting is about reconsidering your life choices when it comes to spending to your own future benefit, she said. It’s about proudly proclaiming the reason why you’re on a budget instead of being shy to admit it. As a result, getting in on this topic makes your brand come across as one that is in the loop and well-versed on how the younger audience is communicating. She added:

Being able to get your message across and staying on trend makes your brand more relevant and appealing to them, hence sparking their interest to pay more attention to you and your offerings.

Olsen explained that brands that are in finance and insurance in particular would have a natural affinity to jump on a trend such as this.

"If they can find a way to create satirical situations out of it that are light-hearted and funny, then I would see it as a success," she said. 

She added that getting in on this topic makes your brand come across as one that is in the loop and well-versed on how the younger audience is communicating.

"Being able to get your message across and staying on trend makes your brand more relevant and appealing to them, hence sparking their interest to pay more attention to you and your offerings," she said. 

Is it a trend that goes against a marketer's goal?

Saying that, loud budgeting could potentially be seen by marketers as a trend that will distract from their main goal which is to sell their products. However, according to Jeffrey Lim, founder and managing director at 8traordinary, this trend is not directly against the goal of marketers who understand that modern day marketing is no longer about sales and promotions but rather, bringing out each brand's unique proposition or cause and aligning it with their customers or fans.

"Jumping on the trend to try to 'sell' will certainly be a bad idea. I think marketers should use this opportunity to align and bring their prospects and customers on their side as well as finding ways to empower them and be on their side," said Lim. 

He added that it is important for marketers to instead be targeted in their audience segmentation and to recognise that it is okay that not everyone will buy from them. 

"Being true and authentic will attract a more loyal and rewarding community and customers," he said. 

Adding to his point, Pamela Tor Das, VP of Singapore and emerging markets at TEAM LEWIS explained that it is important for a brand to jump on the bandwagon only if they can do so while staying true to their values and authenticity.

She added that with social media resulting in luxury being misperceived as the norm rather than the exception, she is glad that something more real and authentic is at play with loud budgeting.

"It is high time for some realism to kick in with what are real needs of individuals rather than a misconstrued social media world that is far cry from reality," she said. 

She added that companies can leverage this to discuss focus areas for their business on how they prioritise investments in order to stay on track and attain their goals.

"I’d like to see this become a movement rather than just a trend – and for brands to do so if there’s value they can bring to the table when it comes to financial literacy rather than trivialising this," she added. 

Join us this coming 24 - 25 April for #Content360, a two-day extravaganza centered around four core thematic pillars: Explore with AI; Insight-powered strategies; Content as an experience; and Embrace the future. Immerse yourself in learning to curate content with creativity, critical thinking, and confidence with us at Content360!

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