TikTokers are trying to save more money in 2024 with the help of the new “loud budgeting” trend

The onset of a new year can often mean adopting new behaviors or hacks to help reach your financial goals — and for some social media users, this year is all about "loud budgeting."

The term went viral on TikTok at the beginning of 2024, with one video racking up over 1.4 million views as of Jan.16. Below, CNBC Select breaks down what you need to know about loud budgeting and how you might be able to use it to reach some of your financial goals.

Loud budgeting is a money-saving technique that involves declining social opportunities — such as grabbing dinner with a friend or going to that destination wedding — when it puts your financial goals in jeopardy, and telling people that's the reason you aren't going.

When it comes to maintaining our relationships, it can often be difficult to forego the catch-up brunch or the friend group vacation everyone says you'll remember forever when you have money on your mind. So individuals often feel like they have no choice but to begrudgingly accept the invite — and the financial ramifications that may follow.

The idea with loud budgeting is to simply empower more people to be comfortable with speaking up about the financial goals that are most top of mind right now.

Regardless, loud budgeting can help you mentally reframe a missed opportunity into a positive action you're taking to meet a long-term goal. "Prioritizing savings and doing it proudly seems like a great idea," says Elizabeth Schwab, Program Chair of the Behavioral Economics and Business Psychology Divisions at The Chicago School. "It de-stigmatizes what many Americans are feeling and experiencing."

However, Schwab does point out that you need to strike a balance between putting money toward your savings and doing activities