Alli Masoero, CFP® – Zenith Lead Financial Planner
Not Rich, Yet: A blog talking about finance in a way you’ll actually understand.
I will scream it louder for those in the back: Stop listening to the people telling you ‘how to generate six additional income streams on the side’ in your newsfeed.
Seriously, when did Tiktok become the new prophet of adulting anyway? Social media unifies the world through laughter, fashion, memes etc., but should we blindly listen to advice from the internet? The idea of you deciding how to rollover your 401k or choose a mortgage from social media, makes a financial planner (myself) worry.
Here are some examples of really bad financial advice commonly found on TikTok
- Cryptocurrency is the future and will make you rich. Reality – TikTok has played a huge role spreading the word on cryptocurrencies. Crypto remains an unregulated asset that carries risks like any investment and should be considered with caution. Some influencers promote it so much on Instagram and Twitter to pump up the value so they can sell their shares at a higher value. So, all of those people who bought in and thought it was “going to the moon” because they didn’t do their due diligence, end up losing money.
- Put the least amount down as possible when purchasing a home. Reality – This is the classic ‘everyone’s situation is different’ but this is especially true with a mortgage. Make sure you determine the best mortgage for your cash flow needs.
- Make money renovating rental properties. Reality – Not all rental properties make money and those purchased using debt have a steeper hill to climb. Passive income is most likely made when you pay in all cash and don’t forget to budget in management fees if you want to be hands off.
Stick to TikTok for new salad recipes or how to wear a top in 8 different ways – not for making your personal financial decisions. Seek advice, like I did while writing this blog. I asked my new coworker Raeonna, who actually has a TikTok and knows how it functions, to help me write this one. Take time to welcome her to the Zenith family!!
These mistakes sometimes take years to recover from, and I want to avoid that happening to you. I may not know TikTok, but I do know how to reach financial independence. I’ll let you judge which is better, and please – be smart guys!
All written content is for information purposes only. Opinions expressed herein are solely those of Zenith, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.