TikTok money trends that can save you money this year

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With inflation still at uncomfortably high levels across Europe and the prices of everyday goods rising rapidly, saving money is a bigger concern than ever for many people.

This has forced many people to cut back on luxury goods and non-essential expenses such as drinking, eating out, shopping, traveling and personal care.

But social pressure to do these things often still exists, especially when social media makes it seem like everyone you know is living their best life. There is a possibility.

It may also be more uncomfortable and embarrassing to turn down friends and relatives for social gatherings and other activities that you don't necessarily want to spend money on.

Enter the latest TikTok craze: budgeting, which loudly claims it can take back control of your finances.

Coined by comedian and author Lucas Battle, loud budgeting took over TikTok and other social media platforms earlier this year. The important thing is to be loud, open and clear that you have the money but just don't want to spend it.

This allows people to not only reduce the taboo around discussing finances, but also to set firm goals and boundaries for themselves.

“Being authentic and having boundaries with how you spend your money, and being able to communicate that message to the world around you, will lead to you saving more money and paying off more debt.” says Alaina Fingal, owner of bookkeeping website The. “Organized Money” reported by CNET Money.

However, that doesn't mean you never go out or decline all social invitations. Rather, it's about prioritizing the people you really want to accept, not the people you feel obligated to say yes to from your peers.

“There's a lot of pressure to spend, especially when you see so many products being advertised all the time and lifestyles that aren't very achievable,” Battle told CNBC.

“Let's send a message to businesses about the country's inflation levels. Be firm. Don't say 'not enough.' That means “I don't want to spend money.”

Why should you try setting a big budget?

Budgeting out loud focuses on sharing your financial goals and aspirations openly and without hesitation with those around you. In a way, this frees you from society's financial and lifestyle expectations and allows you to prioritize your own goals and needs.

So when you decline a social engagement, you can tell them exactly why you chose to save that money and what you want to spend it on.

This can be a small goal, like saving up for a special occasion or item, or a big goal, like a house or a luxury vacation. You may also prioritize other more important or pressing payments, such as your mortgage, student loans, or other types of debt.

In doing so, it also fosters a sense of financial community and inclusion by sharing and recognizing that the majority of people are in debt, struggling with living expenses, and prefer to stick to a budget for a variety of reasons. will be done. In this way, social isolation and fear of missing out (FOMO) are also reduced.

Not only that, but this practice of becoming more open with our finances as a society and community can also lead to more shared goals and tips and plans for achieving them. People may also find themselves receiving more support from friends and family, while at the same time becoming more responsible for themselves and therefore more likely to stick to a budget.

On TikTok, influencers like Jenny Park (@mohaewithjennypark) and Shanna Miller (@shannatravels) share budgeting tips like maximizing retirement savings and cheating on destinations. Masu. Possibly overlapping low-budget and less crowded destinations.

Tips for practicing loud budgeting

A solid budget can help you manage everything from student loan payments to taxes and credit card payments. Therefore, there are some practices, such as offering a friend a meal without coffee or alcohol to save on drinking costs.

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Some people choose more budget-friendly gatherings that don't involve expensive restaurants, such as picnics or walks in the park. Destination camo is another very popular way for people to enjoy traveling but not spend too much money on tourist destinations.

For families, you can start budgeting out loud early on by instilling healthy financial habits and values ​​in your children at a young age. Setting clear savings goals for both you and your family can also be helpful. It can also be helpful to log your expenses in a notebook or app to keep track of your expenses.

Bringing lunch to work, buying supermarket brands, or planning an outing for happy hour may be small ways to reach your financial goals.

However, it is important not to be deprived of too many social opportunities. This can lead to isolation, decreased motivation, and even fall out of fashion prematurely.

It's also important to avoid sharing too many details about your personal finances, such as your income and savings. Similarly, try not to compare yourself to other people's goals or progress.

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How does social media negatively impact your finances?

According to a study by personal finance company SoFi, in a survey of 1,000 people, 74% of respondents said they bought something they saw on Instagram, TikTok, or Facebook in 2022. This is a significant increase from just 40% in 2017.

Additionally, 56% of people admit that more than half of their online purchases were impulsive, making Millennials the most impulsive group when it comes to online purchases.

Meanwhile, 12% of Gen Z respondents said they don't buy anything impulsively online, compared to 10% of Boomer respondents.

Social media can be very helpful when budgeting for a fuss, especially in some challenges such as the “eat-in” challenge to cut expensive restaurant bills.

Other savings challenges and tips include the 52-week challenge where you save 1 euro in the first week and cumulatively add 1 euro each week for the rest of the week, and the 52-week challenge where you keep cash in envelopes for various expenses. There are things like cache stuffing to keep. You can also share categories freely.

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But in many cases, social media can be the reason people's finances are reaching breaking point and leading to tight budgets in the first place. Sometimes setting a big budget and setting financial boundaries can feel like the only option left after spending too much money online.

“If you open Instagram and regularly see photos of your friends traveling through Europe each month or having dinner at a downtown restaurant every day for nearly $100 (€91.81) per person, you'll see the opposite. It's easy to feel like it's better to do things, save more money and live. You only get one annual leave and you're not really 'living'.” Yuval Schminer, CEO of budgeting app Piere, told CNBC.

This feeling of inadequacy and fear of missing out is further exacerbated by lifestyle trends such as quiet luxury and viral products such as the Stanley Cup. The influence of social media can also extend to deciding what kind of furniture, home decor, vacations and clothing you should have.

This influence affects so many aspects of our lives that it can be very difficult to know where to draw the line.

But ultimately, it's all about making sacrifices today for a better tomorrow, and Millennials and Gen Zers seem to be embracing that these days.

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This has also led to a paradigm shift where the most popular personal finance content these days is not about how to make a quick buck, but instead about tips on how to save money and budget.

Disclaimer: This information does not constitute financial advice. Always do your own research to ensure it is appropriate for your particular situation. Also remember that we are a journalist's website and aim to provide you with the best guides, tips and advice from the experts. Any reliance you place on the information on this page is strictly at your own risk.