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Aneth Ng-LIm

Aneth Ng-Lim

<div><span class="fr-img-caption fr-fic fr-dib" style="width:950px"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1713427801643tiktok finance.png" style="width:950px" class="fr-fic fr-dib" alt="Image created using Muse AI"/><span class="fr-inner" style="text-align:left"><em>Image created using Muse AI</em></span></span></span></div><p>At the beginning of the year, loud budgeting went viral on TikTok.  If you’re not on TikTok like me, let me break this down for you quickly.  Loud budgeting is just as its name implies – being loud with your budgeting or savings goals that you will openly tell people this is why you’ll skip the get-together dinner, or will have to pass on the planned out of town trip.</p><p>It&#x27;s not easy to say no to invitations when they come your way.  But saying yes to all, or to many, can make quite a dent on your wallet.  The TikTok trend was supposed to even create positive ripple effects with friends and family maybe getting inspired to join your loud budgeting moves.</p><p>Three months later, I wanted to check in on this viral money advice and see just how many netizens (or TikTokers) have built up their savings, or paid down their credit card debt.  But like with all things TikTok, it seems the followers have moved on to a new fad, or two, or three.  Now they are pushing “cash stuffing”, or the “100 envelope” method, even the “no spend” challenge.</p><p>These new fads could work for you, or the older fads could be more effective.  But the truth is when it comes to budgeting, there are at least 5 universal themes that can help you, regardless of whatever TikTok chooses to call its next fad.</p><div><br/></div><div><strong>#1 Walk before you run</strong></div><p>When you decide you need to change your money habits, make sure to set goals that are realistic.  Cutting your credit cards could be a bad idea if you have been using them to pay for everyday needs.  Instead, take small steps like, from owning 3 credit cards, trim it to 2 and later to just 1.  Credit cards can be expensive, from annual fees to interest charges if you miss a payment or unable to pay in full.  When it comes to savings, again, start with what you can afford.  Maybe 2 percent of your take home pay for the first 6 months, then 5<span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none"> percent</span> , and build it up to 20<span id="isPasted" style="color:rgb(65, 65, 65);letter-spacing:normal;orphans:2;text-align:left;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none"> percent</span>  when you have become a more disciplined saver.</p><div><br/></div><div><strong>#2 Expert who?</strong></div><p>Not everyone who claims to be an expert is actually one.  If you visit a bookstore and go to the personal finance section, you’ll discover the authors come from a diverse background, and not necessarily studied finance in school.  I even came across one who is a former actor whose only claim to expertise is that he became broke and bounced back.  Sorry, but I’ll need more than that before I’ll consider you an expert.</p><div><br/></div><p>When it comes to money advice, the best one is coming from a person who does not stand to benefit in any way from your choices.  If someone comes to you asking you to invest here or there, which turns out to be his or her company, or she or he earns incentives from referrals, don’t say yes just yet.  Do your homework, as it could be a great opportunity or the easiest way to lose your money.</p><div><br/></div><div><strong>#3 Own your money narrative</strong></div><p>What I liked about loud budgeting is removing the shame in saying no.  It’s okay that you can’t afford to eat with friends in that newly-opened restaurant.  It’s okay you skip the latest family reunion overseas.  Because now you know what’s not okay is to be in debt and with no savings.  It’s no longer giving excuses like “I can’t afford it”.  Instead, you’re saying “I don’t want to spend my money for that.”</p><div><br/></div><div><strong>#4 Embrace the 48-hour rule</strong></div><p>One of the toughest spending habits to break is impulse buying.  It’s hard to resist a sale, and these days, offers come to us from all directions.  You don’t even have to be in a mall anymore – you get it from your mobile, from your tablet, from your laptop – and the offers come at all hours of the day.  If you’re serious about spending less, it’s time to delete shopping apps and unsubscribe from email offers.  The less you see, the less you know, the less you are tempted.</p><div><br/></div><p>In an interview with CNBC.com, Jacqueline Howard, head of money wellness at Ally, recommended trying “the 48-hour rule.” Before making any purchase, wait 48 hours, even if it’s on sale.  You’ll discover what a difference two days can make.  “This small window of time allows you to calm your emotions from the urgency of the sale and helps you decide if you really want or need the item,” she said.</p><div><br/></div><div><strong>#5 Save Invest Repeat</strong></div><p>All saving successes have the same backstory – being disciplined.  You need to develop that commitment to saving, then investing, then repeating the cycle, if you want to turn around your money situation.  Start with saving, and then when your funds are big enough, invest them for better returns.  Then keep saving, then invest again.  The more you save, the more you can invest, the higher the returns you can enjoy.  </p><div><br/></div><p>ABOUT THE AUTHOR</p><div><span id="isPasted" style="color:rgb(34, 34, 34);letter-spacing:normal;orphans:2;text-align:start;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial">Aneth</span><span style="color:rgb(34, 34, 34);letter-spacing:normal;orphans:2;text-align:start;text-indent:0px;text-transform:none;widows:2;word-spacing:0px;-webkit-text-stroke-width:0px;white-space:normal;background-color:rgb(255, 255, 255);text-decoration-thickness:initial;text-decoration-style:initial;text-decoration-color:initial;display:inline !important;float:none"> Ng-Lim returns to writing after more than two decades of working as a communications specialist in the government and the private sector. Her advocacy for financial inclusion and personal finance began when she served as head for Consumer Education during her stint at a multinational bank. </span></div>

<p>When it comes to budgeting, there are at least 5 universal themes that can help you, regardless of whatever TikTok chooses to call its next fad.</p>

When it comes to budgeting, there are at least 5 universal themes that can help you, regardless of whatever TikTok chooses to call its next fad.

Should you take money advice from TikTok?

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Should you take money advice from TikTok?

Aneth Ng-Lim

Published Apr 18, 2024 04:24 PM PHT

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Updated May 28, 2024 05:33 PM PHT

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