Money hack to save $100K: Wealth experts explain how to save $100K — and what viral money trends at TikTok you need to ignore

Young people are turning to ‘FinTok’ – the financial side of TikTok – to boost their financial literacy and start saving money, as ASIC cracks down on misleading content from ‘influencers’.

We put viral TikToks under a magnifying glass with financial influencer Queenie Tan and 7NEWS Australia’s financial editor Gemma Acton to separate sound advice from dodgy.

Watch the video above for more information on ASIC’s campaign on “Finfluencers”

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Tan, 25, has been sharing financial content with online youth for the past two years, after quitting her job to become a full-time content creator and building a net worth of $500,000.

She is now using her experience to share advice with young people who are out of touch with traditional financial advisory services.

“I just think there’s kind of a disconnect between the way the older generations see young people. They don’t think young people care about money,” Tan said.

An ASIC survey of more than 1,500 Australians aged 15 to 21 found that more than half of young people worry about money more often.

More than half of the respondents claimed that they were actively trying to figure out how to better manage their money.

Their goals ranged from wanting to know how taxes work, 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.

ASIC regulations impose penalties for violators including imprisonment of up to five years for an individual and fines of millions of dollars for businesses.

The ASIC regulations apply to an influencer whether or not they are a registered financial service provider, and divide the type of advice users can get from these videos into “general advice” and “personal advice.”

Recommendations that require a thorough understanding of your personal situation to be substantiated fall into the “Personal Advice” category.

Influencers also need to have a license to “deal by arrangement” or directly offer a service or product. If the person posting the video is personally going to earn from your click, consider it similar to an ad.

“If[consumers]are following financial influencers, they also need to understand what motivates[content creators]to do so. Do they get paid to promote a financial service or product?” Laura Higgins, head of consumer communications and insights at ASIC, told 7NEWS..

However, Tan says ASIC’s warnings are being heeded to stay within the rules.

“From what I’ve seen, Australian financial content creators are listening to ASIC and regulations, and trying to adapt their content to make it fit those guidelines,” Tan said.

An expert opinion on TikTok trends

General tips on safe-to-consume TikTok usually include content such as video explanations of hard-to-understand concepts, discount limits, and details of government schemes.

7NEWS financial editor Gemma Acton evaluated some viral TikToks to see if the tips stacked up.

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These types of videos explain the lackluster or complicated ideas, by breaking down everything from mortgage insurance to pooled investments, tax and retirement benefits.

In the example below, the “finfluencer” at TikTok gives some advice about ETFs (Exchange Traded Funds).

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“You can waste a lot of money on unnecessary fees, so he’s identified the most popular ones to look up and compare,” Acton says.

“Just remember that chests can add up all sorts of other fees—and sometimes hide them under innocuous names.

“Although 1 percent is a good guideline at the moment, fees have been trending downward in recent years, so this approximate average is likely to decline over time.”

government schemes Whether you’re looking to carve out some cash on your first home loan, or reduce your HECS debt, these types of videos share details about the government schemes available to make that possible.

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“A good place to learn about schemes like this but you’ll need to read all the detailed terms on the government’s website – or consumer advocacy – to see if you qualify,” Acton says.

“Or, whether it will affect any other support you receive or your tax file.”

Trading Strategies

For those who are considering investing in the stock market, there is a lot to know. Choose general tips and strategies over get-rich-quick claims that can’t be proven and don’t take your personal situation into account.

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“Following this strategy is far from a safe bet,” Acton says. Feel free to try your luck with a little side money you can afford to lose if you’re particularly curious — but don’t underestimate it any further.

“You can also keep an eye all the time – and track your stock day trading pattern for free – without putting your money at risk – if you’re interested in knowing how often you work in practice.

“Timing stock movements is very difficult either over the course of a day or a much longer period.”

money hackers From how to get discounts at your favorite stores, to rare coins you can shell out for hundreds, money hack videos share tips to keep in your back pocket, which can make you get paid easily.

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“Always worth a try! Unless you are being asked to pay something for access to Unclaimed Funds or Rebates,” Acton says.

“The government manages the receptacles of unclaimed money and will not ask you to pay anything to recover anything you owe.”

Buying a home Breaking into the housing market can be a long and difficult journey. From saving to a deposit to getting a loan, these videos share information and steps you can take to get there faster.

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“Everything is subtle but these things can change over time,” Acton says. The mortgage rate environment is changing very rapidly right now especially.

“Finally good advice to get help from a mortgage broker…they don’t charge any fees and should provide impartial advice tailored to your personal situation.”

‘Take it with a grain of salt’

Validating the claim in the middle of the scroll is a task in itself, but checking the information before committing it to memory is just one of the few things you should do on FinTok.

Tan shared some tips with 7NEWS.com.au on things to consider when looking for financial advice on the platform.

Watch for guarantees There are always risks in the investing game, and while those risks may be small and limited over time, beware of anyone making claims that sound too good to be true.

It is impossible to substantiate claims of “high return” on a particular stock or service.

Check out the comments section – If the information within the post is illegitimate, there is likely to be a virtual mob opposing the claims.

Check the disclaimer and verification – The creator of the bio may specify in their profile that their videos share personal advice rather than general advice.

Stick to the local “fashionistas” – Information about mortgages, government plans, and taxes is country-specific and the regulations for Australian TikTok users are stricter than in countries like the US.

Be aware of ads – Direct promotion of a particular financial service is against the law if you are not a licensed provider, so make sure you are aware of this when reading advertisements.

Knit under the surface. TikTok is a great way to get 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 more about the concepts and ideas within.

Hacking money to save 100 thousand dollars

It took Tan 33 months to save her first $100,000, which she claims was the hardest teacher to reach, after which she took her foot off the gas.

In the ensuing 30 months, Tan and her partner increased that number fivefold, with a net worth of $500,000.

Here are the financial hacks that helped her get there:

Select the target. The first step is deciding to start your savings journey, with all the sacrifice and energy involved. The first 100 thousand tan was saved in the house deposit.

monthly review. Reviewing your expenses monthly can help to quickly identify when you are off track, and areas where you can save going forward. “It was very tedious at first to look at these phrases, but it became easier to look at them over time!” She said.

Packed lunch. Set up a prep routine for herself to bring home cooked meals to work to avoid spending money on lunches.

Side hustle. While a side hustle might not be sustainable for an extended period of time, a second job or income-generating hobby helped Tan earn extra money that put her toward her goal.

Ask for a salary increase. If you don’t order, you won’t receive. There is a high chance that you have acquired your skills since you were hired. Take a look at what you offer for your role and the salary standard in your field and see if it is appropriate to ask the question.

Refocus on value. We often spend money to make ourselves look cool, or in response to subtle peer pressure. Take some time to evaluate the things that bring you real enjoyment and value, so you can identify spending habits that are not serving you.

Tan says her income comes from five different streams: YouTube ads, earnings, affiliates, sponsorships, and from e-commerce stores.

She notes that it would have been difficult to reach the same goal if she had not been saving with her partner.