The best piece of financial advice that I have learned thus far came from social media influencers / creators, but it has surprisingly worked very well for me and has saved me hundreds of dollars. It is not some gimmick or an app or product you need to buy. It is nothing marketed, over-hyped, or glorified. It is a solid piece of advice that I would not have thought of as a first - generation American teenager born and raised in the middle class.
@your.richbff, whose real name is Vivian Tu, is a social media influencer who retired from Wall Street and now provides free financial advice to her followers. As a daughter of immigrants, the United States’s financial systems were confusing and unknown to me, but her content made some parts about if easier to understand, and at least told me what I needed to know. Other influencers as well, such as @salarytransparentstreet, run by soon -to - be married couple Hannah and James, and @firstgenliving, whose real name is Maria Melchor, work to demystify finance and all things money related to their followers. Watching or listening to content created by reputable professionals—not limited to these three, especially if you don’t live in the U.S. because their content is entirely based on American laws, systems, and currency—is a great way to learn helpful tips and tricks, and also major life-changing advice, about almost any subject, finances being only one of them.
The most valuable lesson I have learned about finances is one I had found in content from each of them. This lesson is to measure the value of an expense not in the cost of the expense itself, but to measure it in hours of work.
For example, before buying new handbag that costs $15.00, if you earn a salary of $15.00 an hour, stop and consider if that purchase is really worth an hour of work. If you earn $20.00, and you want to buy a watch that’s $80.00, that’s four hours of work! For an outdated piece of equipment! But, if you’re a watch enthusiast, it’s your birthday, and it has some significance to you, then maybe that purchase is worth it to you.
If you do not get paid by the hour, and you only know your yearly salary (or your income at some other rate) you can roughly convert your salary to an hourly rate to make an estimate and use this as your basis to compare your purchases to. An hour of work is a lot more tangible than a year, and a smaller amount of money is an easier baseline for everyday purchases than a five-figure number.
Doing this will help reduce excess expenditures, because it will help contextualize your purchases as not just a waste of money, but also a waste of time and effort. It has definitely stopped me from making impulse buys or purchases that I would regret later.
On the other hand, this technique also helps me reduce guilt over spending money when I do need or deserve it. For example, instead of feeling guilty when I want to take a well-deserved vacation, and thus have to pay all the travel expenses while also missing out on work (and / or your parents’ work), you can keep in mind that you have only spent a specific amount of days’ worth of money, and you can calculate whether or not you can feasibly make that amount back with future smart choices and continued hard work after you return.
The idea behind this technique is to change our view of “spending” from something that might be hurting a hypothetical and immaterial goal into a something that is a computable and manageable amount. Practicing this technique helps to both reduce impulse buys and unnecessary purchases, but also to justify spending where it is necessary and / or deserved. During my college years and beyond, every time I want to buy some random product my Instagram ads or TikTok feed are pushing me to buy, I’ll stop and consider not only how much money I am spending on it, but also how much time and effort. Did I really spend an hour flipping burgers or cleaning houses for this?