TikTok’s Surprising Influence on Budgeting and Saving

#Paydayroutine

A new trend called #paydayroutine is inspiring TikTokers to share their budgeting habits every time they get a paycheck.

In videos tagged #paydayroutine, TikTok users break down exactly how much their weekly or fortnightly paycheck is and where exactly that money is going.

By making this information publicly available, TikTokers hope to break free from the dreaded paycheck-to-paycheck lifestyle — and inspire others to do the same.

(P.S. Follow SoFi on TikTok for more fun finance videos!)

Financial Transparency

Many people live paycheck to paycheck because they earn low wages that barely cover basic living expenses. Low earnings and a high cost of living makes it difficult for many to cover basic necessities like housing, food, and transportation in many parts of the country.

But the habit of living paycheck-to-paycheck can impact workers across the economic spectrum. High earners can find themselves trapped in something known as “lifestyle creep” — or dialing up your spending habits every time your income increases.

To help build better money habits, TikTokers are taking the vulnerable step of revealing their take-home pay to their followers. From there, they break down how much is allocated to rent, food, credit card payments, utilities, savings, and other expenses. This radical transparency helps users learn from others in their income bracket and see how they compare.

So far, the hashtag #paydayroutine has received around 53 million views.

Leveraging Behavioral Finance

Sharing your personal finances online may sound intimidating. But some experts say getting into a #paydayroutine may be a healthy habit.

In theory, sharing financial habits helps to provide two things: guidance and accountability. You open yourself up to helpful recommendations from other users, and create a comfortable space to share your progress and receive encouragement if you start to fall behind.

This doesn’t necessarily mean you should start broadcasting your tax returns on TikTok. But by sharing your finances with a close friend or significant other, setting goals together, and keeping them in the loop with any progress you make, you can create a healthy #paydayroutine all the same.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23051703