by Adriana Morga
NEW YORK (AP) — Are you intimidated by personal finance? Vivian you want to help.
Tu is best known for her TikTok account, “Your Rich BFF”, where she creates entertaining videos about personal finance. Topics include how to negotiate your salary and practical tips for dealing with credit card debt. Tu, who calls herself “your favorite Wall Street girl,” has 10 million followers on social media and has published two personal finance books.
Born and raised in Baltimore, Tu often connects her interest in personal finance to her upbringing as the daughter of Chinese immigrants. His parents raised him to be frugal and appreciate money since childhood, but it wasn't until a few years into his corporate career that he realized he had a passion for the subject.
Tu graduated from the University of Chicago and then began his career as a trader for JPMorgan in New York. After leaving Wall Street, he worked in sales at BuzzFeed for a few years. In late 2021, Tu started her TikTok account, which has 2.7 million followers to date. She came up with the idea because she was always giving personal finance advice to her coworkers.
She also hosts a podcast, “Networth & Chill,” and was recently appointed as the Head of Financial Empowerment for fintech and banking platform SoFi. His most recent book, “Well Endowed,” was published this month.
From avoiding overspending to getting started on your investing journey, here are some of TU's top personal finance tips:
Talk to your loved one about money
That said, finances are one of the most important conversations you can have with your significant other. talking about money This can be scary as a couple, but it's important for your future. While many people wait until they get engaged or married to talk about finances, TU advises you to start as soon as possible.
“Start early, start often. I always say you have to talk about money on the first date,” she said.
TU recommends starting conversations with fun questions. One is “If I gave you $100,000 tomorrow for your dream two-week vacation, what would you do?” If, for example, one person wants to spend money on excursions in nature and the other wants to spend it on an expensive resort, this reflects a discrepancy in lifestyle priorities.
Conversations about finances can be fun and may provide insightful lessons about your partner's financial values and goals. But conversations about money shouldn't be intense from the start; They can evolve like your relationship.
avoid overspending
overspend Saving for an emergency fund can get in the way, or worse, it can put you into credit card debt. To avoid this, Tu recommends stopping and asking yourself why you're making a purchase.
“The most important question to ask yourself before buying anything is: Do I want it or do I want people to know I have it?” You said. “There have been many instances in my personal life where I have bought stuff to look cool, to prove to someone else that I am cool.”
TU advises you to make deliberate purchases and avoid spending just because you feel pressure to belong to a specific social circle.
buying vs renting
Often presented as part of “The American Dream”, purchasing a home has become more expensive, making it an unattainable goal for many. But owning a home isn't always the best option for everyone, Tu said. on rent Can provide greater flexibility and affordability.
“Are you OK with maintaining your own HVAC, providing plumbing for toilets, if something starts leaking at 2 a.m.?” You said. “If not, you better hold your landlord accountable.”
Many people view buying a home as an investment in their future. Even if you're living on rent, you can invest and keep yourself in good financial shape, Tu said. She recommends setting aside money for other investments, creating a savings account, and paying off any debt.
When it comes to investing, start small
If you find investing intimidating, there are options that can help you get started on your journey. If you find investing confusing or you want to make it as simple as possible, TU recommends using a robo-advisor.
“A robo-advisor is a happy medium,” she said. What I like about (robo-advisors) is that anyone who doesn't understand investing can invest in 45 minutes. It is better to start today than tomorrow, the sooner the better.”
Robo-advisors are automated investment services. They ask you a series of questions about your financial situation and future goals, and then use the data to advise you and invest.
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