School teaches us many subjects and provides different skills, but not everyone is lucky enough to get a proper glimpse into the bewildering world of Money. And as some of us are still lost in the darkness of financial housekeeping, TikTok users come flying with their genius advice regarding all things money and cover aspects of when, what and how.
TikTok not only instructs us how to dance, lipsync, or put makeup—it is now educating us on how to maneuver through the world of personal finance.
You can check out some of the ingenious insights given by TikTokers and let us know what you think or even share your own tips and tricks on how to deal with day-to-day money, saving, and retirement.
Know What An Emergency Fund Is And Have It Ready For Rainy Days
“Can you elaborate what an emergency fund is? An emergency fund is six to eight months worth of your essential expenses saved in a bank account or an asset that is easily transferred into cash. Your essential expenses is everything that your life depends on: food, your rent, mortgage, commute—you name it. Your essential expenses don’t include impulse shopping on Amazon, for example, so that’s good news. What you want to do before you start investing of any kind is to sit down and calculate how much money you are spending on essential expenses and save up to six to eight months of that in your emergency fund. That way, if s*** hits the fan and you lose your job or something like that, you don’t have to panic sell your investment assets because you have a safety net to rely on during the rainy day.” [watch the video here]
Buying A Used Car Rather Than The Latest One Will Save You Money
“If you just graduated college, let’s say you’re still living at home and you get your first job, a car is like, one of the worst investments you could ever make. To get a new car, which automatically depreciates, by the way, at least 10% the second you drive it out of the lot—buy a used car. Even if you buy a car that is like 2 years older than the newest one, you’re saving like 40% off there.”