Money Hacks To Save $100k: Wealth Experts Explain How To Save $100,000 – And Which TikTok Viral Money Trends To Ignore
Young people turn to “FinTok” – the financial side of TikTok – to increase their financial literacy and start saving money, while ASIC tackles the misleading content of “influencers”.
We put viral TikToks under a magnifying glass with financial influencer Queenie Tan and 7NEWS Australia financial editor Gemma Acton to separate the good advice from the unreliable.
Watch the video above to learn more about ASIC’s crackdown on ‘influencers.’
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Tan, 25, has been sharing financial content with young people online for the past two years after she quit her job to become a full-time content creator and built a net worth of $500,000.
She uses her experience to share tips with young people disconnected from traditional financial advisory services.
“I just think there’s a bit of a discrepancy between how the older generations see younger people. They don’t think young people care about money,” Tan said.
An ASIC survey of over 1,500 Australians aged 15 to 21 found that more than half of young people often worry about money.
More than half of respondents claimed they were actively trying to learn how to manage their money better.
Their goals ranged from wanting to learn how taxes work to saving and investing, achieving financial goals, and living independently.
But as more people flock to TikTok to build their financial literacy and get tips, ASIC has taken action to ban misleading or deceptive behavior online.
7News Finance Editor Gemma Acton (left) and ‘influencer’ Queenie Tan share their insights. Credit: Included
ASIC regulations impose penalties for violators, including up to five years in prison for an individual and millions of dollars in fines for a company.
The ASIC regulations apply to influencers whether they are a registered financial services provider or not. The type of advice users can get from these videos is categorized into “general advice” and “personal advice.”
Recommendations that require a comprehensive understanding of your situation to be substantiated fall into the ‘personal advice’ category.
Influencers must also be licensed to directly “deal by arranging” or offering a service or product. If the person posting the video personally benefits from your click, think of it as an ad.
“If (consumers) follow financial influencers, they also need to understand what motivates (content creators) to do so. Are they paid to promote a financial service or product?” ASIC leader in consumer insights and communications, Laura Higgins, told 7NEWS.
However, Tan says the ASIC warnings to stay within the rules are being followed.
“From what I’ve seen, Australian financial content creators are listening to ASIC and the regulations, and they’re trying to adapt their content to fit within those guidelines,” Tan said.
An expert looks at TikTok trends.
General advice about TikTok that is safe to consume usually includes content such as video explanations for hard-to-understand concepts, discount seekers, and details about government regulations.
7NEWS financial editor Gemma Acton reviewed some viral TikToks to determine if the advice was right.
These videos explain Everything from mortgage insurance to pooled investments, tax offsets,, and pensions, presenting boring or complex ideas.
In the example below, a TikTok ‘influencer’ gives some advice about ETFs (exchange-traded funds).
Acton says, “You can waste a lot of money on unnecessary costs, so he’s identified the most common ones to watch out for and compare.”
“Remember that funds can add other fees – and sometimes disguise them under innocent names.
“Even though 1 percent is a good guideline for now, rates have lowered in recent years, so this rough average could probably go down over time.”
Government Schemes: Whether you’re looking to save money on your first home loan or reduce your HECS debt, these videos provide information about government schemes available to make it happen.
Acton says: “A good place to learn more about these types of schemes, but you should read all the detailed terms and conditions on the government’s website – or a consumer advocacy website – to see if you qualify.
“Whether it would affect other support you receive or your tax profile.”
There is a lot to know for those considering investing in the stock market. Opt for general advice and strategies over get-rich-quick claims that cannot be substantiated and do not consider your situation.
Acton says: “Following this strategy is far from a safe bet. Feel free to try your luck with a little extra cash you can afford to lose if you’re particularly curious – but don’t put down more.
“You can also just watch – and follow the day trading pattern of stocks for free – without risking your money – if you’re curious how often it works in practice.
“Timing stock movements is considered extremely difficult, both over a day and over a much longer period.”
Money Hacks From how to get discounts at your favorite stores to the rare coins you can redeem for hundreds, money-hacking videos with tips to keep in your back pocket will help you make money easily.
Acton says: “Always worth a try! Unless you are asked to pay something to access the ‘unclaimed money’ or ‘discounts’”.
“The government manages the unclaimed money pots and will not ask you to pay anything to get back something you owe.”
Buying a house Breaking into the housing market can be a long and difficult journey. From saving for a down payment to getting a loan, these videos share information and steps you can take to get there faster.
Acton says, “Everything is right, but these things can change over time. The mortgage interest environment, in particular, is changing very quickly right now.
“Ultimately, some great advice to get help from a mortgage broker…they don’t charge and should provide impartial advice tailored to your own personal situation.”
‘Take it with a grain of salt.’
Checking a claim mid-scroll is a task, but verifying information before committing it to memory is just one of the few things you should do on FinTok.
Tan shared some advice with 7NEWS.com.au on things to consider when looking for financial advice on the platform.
Beware of guarantees – There are always risks in the investment game, and while those risks can be small and diminish over time, you should be wary of anyone making claims that seem too good to be true.
Claims of a “significant return” on a specific stock or service are impossible to substantiate.
Check the comments section – If the information in a post is illegal, a virtual mob is likely disputing the claims.
Check for disclaimers and verifications – A content creator can state in the bio on their profile that their videos offer personal advice rather than general advice.
Stick to your local “influencers” – Information on home loans, government regulations, and taxes is country-specific, and the rules for Australian TikTok users are stricter than in countries like the US.
Be Aware of Ads – Directly promoting a specific financial service is against the law if you are not a licensed provider, so make sure you know this when reading any ads.
Scratch below the surface. TikTok is a great way to wrap your head around the financial jargon needed to do further research.
Save the videos that spark interest and excitement and use them as a springboard to learn about the concepts and ideas in them.
Money Hacks at $100k. to save
Tan took 33 months to save her first $100,000, which she says was the most difficult milestone, after which she took her foot off the gas.
In the 30 months that followed, Tan and her partner increased that number fivefold, with her net worth reaching $500,000.
Set the goal. The first step is deciding to begin the rescue journey with all the sacrifices and energy involved. Tan’s first 100k was saved for a house deposit. Here are the money hacks that helped her get there:
Monthly overview. Taking a monthly look at your spending can quickly tell you when you’re going off track and areas where you can save in the future. “It was very discouraging to look at those statements at first, but over time it became easier!” she said.
Packed lunch. She’s set up a prep routine for bringing home-cooked meals to work to avoid spending money on lunches.
Side hustle. While a side job may not last long, a second job or an income-earning hobby helped Tan earn extra money she put toward her goal.
Take a look at what you bring to your position and the salary standard within your industry and see if it is appropriate to ask. Ask for a pay rise. If you don’t ask, you don’t receive. Chances are, you’ve been upskilling since you were hired.
Refocus on value. We often spend money to impress or in response to subtle peer pressure. Take the time to evaluate the things that bring you pleasure and value so you can identify the spending habits that aren’t serving you.
The 25-year-old shared a chart that shows exactly where you can make small changes without sacrificing your lifestyle. Credit: Queenie Tan
Tan says her earnings come from five different streams: YouTube ads, dividends, affiliates, sponsorships, and e-commerce stores.
She notes that the same goal would have been harder to achieve if she hadn’t saved with her partner.