Many TikTok “tips” promise to save you hundreds of dollars a year with no effort. Don’t be fooled.
In social networks, you don’t have to submit a resume to be an influencer, so anyone can become an “expert” in something, with a bit of smooth talk and demagogy. This is especially concerning when it comes to our money. Beware of the saving and investment tricks that abound on TikTok and the like, as explained by two finance experts.
Business Insider spoke with Brenda Ibarra, a financial advisor at HelloSafe, and Elizabeth Wakefield, an independent advisor, who explained why you have to be careful with saving tips and tricks of social networks such as TikTok or YouTube.
Many savings tricks propose the impossible: save effortlessly. Or they offer advice that seems easy to follow, but when you start to do it, you see that it is not.
For example, there are tricks that propose to start saving 1 cent a day, then 1 euro, etc. But… who has pennies, or that much cash to set aside daily, nowadays?
EITHER pyramid tricks with a term of one yearwhere you start saving a few euros a month, and in the last months you have to save 40 or 50 euros a week. Normally whoever uses these tricks is strapped for money, and saving 50 euros a week is unrealistic.
Beware of TikTok saving tricks
Most TikTok save hacks are only done once, and then you get tired or don’t repeat. But effective saving is only achieved if you make it a habitIt’s not about trying tricks once in a while.
Brenda Ibarra affirms that: “The best thing you can do is save “normally”, on a regular basis. Save 20% of your monthly budget, generate extra income and save it… or cut back by comparing the insurance you have taken out, like your car, for example“.
Elizabeth Wakefield recommends “consider saving as if it were an expense, that is, prioritize it at the beginning of each month as soon as your payroll or income enters your account and allocate it to a specific savings account. Basically, work the habit of saving. You set an automatic amount through scheduled transfers“.
Also you have to be careful with TikTok investment advice and other networks, be it cryptocurrencies, stocks, and other financial products.
“An investment is not good or bad by itself“, explains the independent adviser, in Business Insider.
And continues: “It may or may not fit the person depending on a series of characteristics that financial advisers must take into account: age, reason for investment, time horizon, level of knowledge, experience, preferences, availability of investment or personal and work situation“.
That’s why general investment advice is uselessbecause each person is different.
So you already know. Be very careful with TikTok saving tricks and the like. Most won’t work if you don’t make saving a habit. Or because there is no perfect investment that works for everyone. Each person has different needs and limits when it comes to risking their money, or being able to save.