This TikTok Money Mentor’s Tips Are So Good, I Couldn’t Stop Watching If I Tried

Because of my major supply of millennial information (social media) and the magic that’s the algorithm, I stumbled upon Vivian Tu and her viral movies on her account Your.RichBFF. As somebody who loves private finance content material, her account mainly grew to become my heaven. Flash ahead to immediately, and I’ve learn Vivian Tu’s New York Occasions Finest-Promoting Guide, Wealthy AF: The Profitable Cash Mindset That Will Change Your Life, and I nonetheless can’t get sufficient of her content material.

Why am I so obsessed, you would possibly ask? Nicely, Tu makes private finance enjoyable, attention-grabbing, and related. Nothing about her movies feels redundant or stuffy like different content material I’ve consumed up to now—as an alternative, her strategy and suggestions are inspiring and eye-opening, offering a unique and contemporary strategy to the world of finance. As somebody who needed to fumble by her twenties with minimal steering on make good cash strikes, I’m envious of all of the twenty-somethings who can profit from her recommendation proper now.

Private finance can really feel complicated and overwhelming and the identical previous cash recommendation can get previous after some time—everyone knows that budgeting and investing are necessary. So in the event you’re searching for new, distinctive methods to get essentially the most out of your cash, construct wealth, and save in savvy methods, look no additional than Vivian Tu, who is devoted to creating game-changing private finance suggestions accessible to everybody. Forward, I’m sharing one of the best recommendation I’ve realized from Vivian Tu and all of the explanation why I can’t cease consuming her content material.

1. Maximize Your Earnings to Get Extra Out of Your 9-to-5

Most employers give their workers a rise of round 3% yearly, in keeping with Investopedia, however Tu recommends asking for a ten% to fifteen% increase each single 12 months to get essentially the most out of your incomes potential. “Whereas this may seem to be loads, and also you won’t get this yearly, it’s necessary to ask,” Vivian shares. The extra you earn, the extra you’ll be able to make investments. And the extra you make investments, the extra your cash will be just right for you as an alternative of you working in your cash.

To set your self up for achievement throughout the dialog together with your supervisor, there are two key gadgets you need to put together: your accomplishments and market analysis. It’s essential to focus on the way you add worth to the corporate and all the good work you’ve finished, so make an inventory of what you’ve delivered to the desk whether or not it’s how a lot revenue you’ve introduced in, the objectives you’ve hit, and even the massive tasks you’ve accomplished forward of schedule. Equally, come ready with what the market fee is in your function to assist justify your ask for a increase, which you’ll analysis through web sites like Glassdoor or Payscale.

In case you come ready to make your ask and the reply isn’t any or lower than what you anticipate, don’t sweat it. Use it as a chance to ask your supervisor what you are able to do to earn a increase so you’ll be able to put together in your subsequent compensation dialog, or if this has occurred earlier than and also you wish to earn extra, use it as an indication to search for employment elsewhere.

Keep in mind, you’ll be able to solely lower so many bills out of your funds, however your earnings potential is limitless. Most individuals assume that with a purpose to have extra money, they should cut back their bills and funds. However in the event you’ve already decreased your bills, like canceling subscriptions and reducing pointless spending, your solely different choice is to create extra earnings, both by asking for a increase or by further work like a facet hustle. “You aren’t working in your well being, you’re working for cash, and it’s okay to be upfront about that.” Whereas it’d really feel audacious, bear in mind, the reply is all the time no in the event you don’t ask.

2. Leverage Loopholes to You Cut back Your Taxes

Excessive earners reap the benefits of tax credit and tax breaks, and there’s no motive you shouldn’t, too, in keeping with Tu. There are a couple of methods to do that that aren’t talked about almost sufficient. The primary is particularly for low or moderate-income earners who can probably get a tax break by the Earned Earnings Tax Credit score (EITC). This credit score reduces the quantity of tax you owe or may get you a refund in the event you qualify. Vivian shares on her TikTok that there’s even a quiz on the IRS web site that can permit you to see in the event you qualify for the credit score. In case you do, be sure that to ask a tax skilled about how one can take advantage of it. If not, you’re leaving useful cash on the desk.

Equally, Tu shares overtly a few backdoor Roth IRA, which is one in every of my favourite authorized loopholes I’ve realized from her thus far. A backdoor IRA helps excessive earners (those that earn over $161,000 a 12 months for singles and over $228,000 for married submitting collectively in 2024) save for retirement by permitting them to transform a portion of their conventional IRA to a Roth IRA. Since you’re already paying taxes in your conventional IRA, changing your conventional IRA to a Roth IRA permits your retirement financial savings to develop tax-free. And for these of us making an attempt to develop our wealth, the extra money we will save, the higher.

Tax season may be overwhelming and sophisticated, so most individuals rush by it simply so it may be over. Once you do that although, you miss out on alternatives to guard your cash and even earn extra of it. With recommendation like this from Tu, your valuable cash will keep the place it belongs—in your accounts—and develop exponentially.

3. Cut back Medical Prices by Negotiating Your Payments

In case you assume what you see is what you owe once you obtain a medical invoice, assume once more. I’ll admit that this was once me and that my “it’s what it’s” mentality did me soiled till I got here throughout Tu’s recommendation for negotiating medical payments. Once you obtain an itemized medical invoice, Vivian recommends visiting Honest Well being Client or Healthcare Bluebook to analysis what the procedures and companies ought to truly value. Then, whether or not you’ll be able to afford the invoice or not, name your medical supplier to barter the associated fee. Vivian shares inquiries to ask the supplier to share waivers, reductions, and reduction plans which can be out there to you together with, “Which of those charges may be waived?,” “I do know many hospitals have medical reduction plans—are you able to inform me about yours?,” and “What reductions do you supply for monetary hardship?”

I like that Vivian brings this recommendation to gentle as a result of most individuals assume that medical payments are set in stone, however she’s completely proper that there’s some flexibility. After studying this, I’ve referred to as my supplier to make clear expenses and cut back my medical payments—who knew it was so easy and accessible?! Even when the prices are nonnegotiable, as Tu shares, there could also be choices out there to arrange fee plans that aren’t extensively marketed. Both approach, there are all the time methods to make your payments extra manageable, which is a big sigh of reduction, particularly on this financial system.

4. Put together Your Funds for Potential Layoffs

Do you know which you could predict giant layoffs at your individual firm? I didn’t know this till Tu shared about it over on her TikTok account. Because of the Employee Adjustment and Retraining Notification (WARN) Act, most employers with over 100 workers are required to offer written discover a minimum of 60 calendar days prematurely of lined plant closings and mass layoffs. Tu explains that to search out WARN notices in your state, all you must do is Google the WARN Act and your state. Then, you’ll discover a .gov web site that can present a full checklist of corporations shedding workers. By retaining abreast of potential layoffs, you’ll be able to guarantee you have got a plan in place in your funds and your subsequent profession transfer if you find yourself within the crossfire.

This piece of recommendation shocked me. I really had no concept concerning the WARN Act, and I needed to Google it to imagine it. In a time the place you see new layoffs each time you log onto LinkedIn, this recommendation is a sport changer. By retaining abreast of potential layoffs, you’ll be able to guarantee you have got a plan in your funds and your subsequent profession transfer if you find yourself within the crossfire. For instance, you can begin boosting your emergency fund, updating your resume, connecting together with your community, and searching for new alternatives forward of time. Whereas layoffs suck, a proactive strategy relatively than a reactive one will assist make sure you’re ready for no matter could come your approach.

5. Safe Wealth for Generations

After all, all of us need wealth for ourselves proper now so we will stay the lifetime of our goals (a visit to Italy this summer time? Sure please!), however what about generational wealth? You probably have kids or are planning to sooner or later, Tu shares useful suggestions for setting your kids up for achievement to allow them to have a leg up on their funds.

The primary of three ways in which Tu shares you’ll be able to construct era wealth is to make your youngster a licensed consumer in your bank card. Once you pay your bank card on time and in full, your youngster’s credit score rating will profit out of your good monetary habits. Second, you’ll be able to (and may!) open a custodial Roth IRA in your kids. When your youngster has earned earnings (i.e., mowing lawns or babysitting), you’ll be able to then make investments the cash in index funds to set them up for future success. Lastly, you’ll be able to arrange a 529 plan which is able to enable you save for his or her schooling sooner or later—like protecting the longer term prices of faculty or commerce faculty.

As a mother and somebody who graduated faculty with a variety of scholar mortgage debt, setting my youngster up for achievement is essential to me. After listening to this recommendation from Tu, I opened a 529 account for my son. As a result of whereas I began my skilled profession in debt, he doesn’t must.

6. Neglect Taboos and Discuss About Cash

Speaking about cash has been seen as taboo because the daybreak of time. However the best way I see it, solely good issues can come from speaking about cash, and Tu agrees. Once I requested her what her most necessary piece of recommendation is for these seeking to stay a financially ample life, she stated, “Discuss to your folks about cash, assist them, and allow them to enable you.” She went on to share that in her early twenties, she “thought that there may solely be one winner. One lady dealer. One success story. One finest,” however she rapidly realized that different ladies aren’t competitors. After we share our objectives and ambitions, we maintain one another accountable and change into higher variations of ourselves. “We’re stronger, higher, and smarter after we collaborate as an alternative of compete,” Vivan says.

I’ve to confess, speaking about cash with pals or household used to make me utterly cringe. And whereas I’m nonetheless not excellent at it, and my anxiousness typically will get one of the best of me, I’m getting higher at it. I’ve integrated the subject of cash into conversations the place I used to draw back from it, I’ve efficiently inspired folks to open up high-yield financial savings accounts to maximise their emergency funds., and I’ve talked about how my husband and I’ve paid off our scholar loans to anybody who will hear. It’s taken observe, however I’m getting extra snug with it. And thru my discomfort, I’ve discovered confidence.

I’ve seen the optimistic impacts of destigmatizing cash in my realm of affect, and it’s made me much more apt to speak about it. So in the event you see me screaming from the rooftops about cash and all the remainder of the game-changing suggestions I’ve realized from following Vivian Tu, I encourage you to affix me.