#fintok racks up 1.2bn views as young people seek financial independence

Finance Experts at Merchant Cash Advance analyzed #fintok (Finance TikTok) to find the most popular finance tips and researched them to reveal whether they are beneficial.

It found that the hashtag had generated 1.2bn views and is rapidly growing as younger people start to realize the importance of their financial decisions.

From cash stuffing to following the 50/30/20 rule, have you heard about some of the more recent investment tips that are blowing up online? How about:
 

• ‘TikTok’s Top Finance Tips: Cash Stuffing, Budgeting + MORE!’
• ‘The Money Saving Hacks That Are Taking TikTok By Storm’
• ‘TikTok Investment Tips That Could Help You Maximize Your Income”

Pay yourself first

 
Instead of pushing back any long term saving goals, resist the temptation to spend by allocating a percentage of your wage to savings or investment accounts as soon as you get paid. By prioritizing your savings, you will get into the habit of living off a percentage of your income while building security for your future self. As well as long term retirement or investment goals, these savings can also be allocated for upcoming goals such as building up an emergency fund or purchasing a car or home.
 

50/30/20 rule

 
Once you receive your paycheck, split it into three based on the 50/30/20 rule. The 50% will be made up of your needs, going towards your home, transport, food and necessities such as your phone bill. Next, 20% should be invested into your savings, being instantly put towards your emergency fund, retirement, investment accounts or real estate. The final 30% can be used as you like, spent on clothes, vacations, restaurants and entertainment as you please. If you’re looking to fast track your wealth, lower the percentage you allocate towards your wants and increase the savings.
 

Live below your means

 
Even if you are hopping up the career ladder and find yourself earning a higher than average wage, avoid the temptation to increase your living costs if you’re aiming to save money. By actively making the decision to keep your costs low, living with family or sharing with friends, your money will accumulate faster so you can use it wisely. By having more disposable income, you can invest in a business venture or invest so you can generate long term assets, accumulating your money without having to do work for it.
 

Cut back on recurring charges

 
Our ongoing expenses are the ones that can add up the most, often without us even realizing it. Your recurring charges are things like your food bill, electricity and utilities; although they are never going to go away, they take up a significant chunk of your pay so every little helps. Small actions like cutting back on how much you eat out, hanging your clothes out instead of using the dryer and not running the water for longer than you need can go a long way and save those important pennies.

Track your spend

 
Nowadays, there are plenty of apps which allow you to track your spending habits and stay on top of your money so utilize them! As well as making it easier than ever to see how much you are spending, the apps have the ability to break down your expenses by category so you can identify areas in which you are overspending and set your budgets. It also allows you to quickly search your expenses to find what you’re looking for as and when you need it instead of having to trawl through your bank statements.
 

Cash stuffing

 
Cash stuffing consists of using any spare money you have to allocate to your different needs. Keep a folder with different compartments or a range of envelopes which are each labelled with a different need, adding physical cash into each and noting down the amount you’re adding. Some of these sections will include practical savings such as emergency funds, home maintenance or medical bills whereas the rest can be tailored to your personal needs and include things like vacation funds, birthday gifts or wedding finances.
 

Diversify your investment

 
If you have money available to invest, starting as soon as possible will maximize the outcome and avoid your money depreciating value. The Ginvest app will ask what type of investor you are and help you learn more about the options available to you, helping you track your investments at every step of the way. Newer investment opportunities include the global multi-asset income fund and stock investment fund which each have a minimum spending and offer plenty of information about the investment opportunity.
 
They really are the future; find out more about Merchant Cash Advance here >