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.
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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.
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