TikTok is full of financial advice. Some creators know their stuff, and others, well, the less said, the better. In the viral social media era, just because something is popular doesn’t mean it’s worth doing. Ask anyone who tried the face wax challenge.¹
So, which of the TikTok spending strategies are worth adding to your watchlist?
Loud budgeting (do it)
Loud budgeting is when you publicly share with your friends and family that you’re trying to control your spending and save money.
People know in advance that you might turn down the next dinner out, weekend getaway, or visit to the salon.
Does it work? Yes, loud budgeting can be effective. It can relieve financial peer pressure by setting context and boundaries, and can help you stick to your goals.
Cash stuffing (skip it)
Something about seeing actual money makes it feel more real than a credit card or bank statement. The cash-stuffing trend is based on that feeling.
You could use the cash-stuffing envelope budget system. You put money in envelopes for each part of your budget: groceries, going out, clothes, etc. Once you spend all the cash in an envelope, that’s it for the month.
You could also use cash stuffing to save money. For example, the 100 envelope challenge has you gradually save money every day in a different envelope. You start at $100 and reduce the amount by $1 a day:
- $100 on day one
- $99 on day two
- $98 on day three, and so on
By the end of the challenge, you’ll sock away over $5,000.
Does it work? Cash stuffing can help your budget, but there are many inconveniences to consider. Having a lot of money lying around the house isn’t necessarily safe, you won’t earn bank interest, and using cash for all of your major purchases, especially certain bills, may not be practical.
Quiet luxury (do it)
Quiet luxury is the opposite of fast fashion. You buy higher-quality clothes in neutral colors that always remain in style. The little black dress is a cultural icon for a reason.
Your outfits last longer, meaning fewer shopping trips. Of course, this doesn’t give you free rein to break the bank on your new wardrobe. Look for high-quality second-hand items at thrift stores or online.
Does it work? Yes, quiet luxury can benefit the environment and your wallet if you stick to your clothing budget.
Buy now, pay later (skip it)
After a few minutes of watching TikTok influencers, how can you not feel lifestyle envy? With online buy now, pay later services, you too can get that vacation or handbag you’ve been drooling over without paying everything upfront.
The payment service might charge little to no interest, making it feel like free money. And ads for these services are all over TikTok.²
Does it work? As you can guess, trying to have your cake and eat it, too can lead to problems. 56% of people who use buy now, pay later run into financial issues like missing payments and overspending to build debt.³
Remember the budget basics
The financial trends that are worth doing from TikTok reimagine advice that has made sense for 100 years: set a budget, spend less than you earn, and save for the future. That advice isn’t as viral, but it works.
If a TikTok trend can help you reach these goals, go for it. For a more traditional, tried-and-true approach, check out the 50/30/20 budget.