Loud budgeting: Gen Z’s bold new approach to spending smart and saying ‘no’

Gone are the days of social guilt forcing people to say “yes” to plans they can’t afford. Loud budgeting is about being vocal and unapologetic about financial priorities, reshaping the conversation around money, experiences, and social expectations.

Spending with intention

For Pavitra Mohan Singh, a PR executive, mindful spending is key to tackling rising inflation. “I treat myself occasionally, but not extravagantly. It feels prudent to prioritise savings, so I’m prepared for any surprises that might come along. Instead of seeing budgeting as restrictive, I view it as a way to focus on what truly matters,” he said. By openly discussing his financial choices, Singh hopes to encourage others to feel confident about managing their money.

Dr Neerja Agarwal, CEO and co-founder at Emoneeds, believes the essence of any trend lies in self-expression and a sense of belonging. But loud budgeting takes it a step further—helping young adults escape the pressure of costly social experiences while promoting financial responsibility. “This trend is redefining ‘missing out.’ Instead of seeing it as a loss, people now view opting out as an intentional choice,” she said.

Agarwal also said, “This trend paves the way for more sustainable and intentional lifestyles, reminding people that true connection and happiness don’t always come with a price tag.”

A financial mindset shift

Jheel Pamecha, a clinical psychologist at LISSUN, spoke about how FOMO – defined as the anxiety or fear of inability to be present somewhere or do something – is deeply tied to social status and prestige and creates a feeling of inadequacy. “In this context, reframing the mindset by ‘loud budgeting’ can not only be a very personal choice, yet a brilliant and practical decision that fights the wave of FOMO youngsters are riding nowadays,” she said.

For Sara Siddiqui, a publishing consultant, budgeting has always been a priority. She chooses to spend on gifts for family and friends, and dines out only occasionally. “I rarely splurge on luxuries. Since I have minimal expenses right now, I see it as the perfect time to save.” Her living arrangement with her parents and remote work setup offer her the perfect foundation to curtail on expenditure while her peers spend with abandon.

Tiktok’s loud budgeting trend picked up pace in 2024. (Source: Freepik)

What can you do with the money saved?

Kolath believes loud budgeting is powerful because small, consistent savings build long-term wealth.

Mukesh Pandey, director of Rupyaa Paisa, emphasises that budgeting isn’t just about cutting costs—it’s about gaining financial freedom. “Instead of chasing momentary happiness, today’s youth are rewriting their financial stories through self-discipline and vision. It’s not about forgoing experiences but redefining their value,” he said.

While vocally turning down events subjects people to soft and hard statements from near and dear ones, it boosts the idea of young adults making savvier spending decisions.

“Most people think that one big purchase will dent their retirement fund. That’s not true if you have systematic savings planned. Putting an additional Rs 10,000 into an SIP for 40 years into an instrument that gives you 9 per cent return will get you Rs 4.7 crores for an invested amount of Rs 48 lakh. A growth of nearly 100 times. The money you invested is Rs 48 lakhs and you got Rs 4.7 crores,” said Kolath.

Pandey’s advice is to efficiently allocate saved money to areas of long-term value and stability. “One way is investing in mutual funds, a retirement plan, or a high-yield savings account. Another option is to chip money saved into skill-based courses, training and certificates, and even build starter capital for entrepreneurial ventures,” he said.

By prioritising long-term goals over short-term indulgences, young people can develop a healthier relationship with their finances and mental well-being.