TikToker From New Zealand Provides Budgeting Hack That Resonates With Salaried Workers Globally
TikTok also brings creativity into budgeting to increase savings via everyday hacks
In a financial landscape where unconventional solutions to save money are often overlooked, Hannah Koumakis, a 24-year-old TikToker from New Zealand, has emerged as a beacon of financial wisdom. In her TikTok series, "No Longer Broke," she candidly shares her practical budgeting approach, proving that fiscal responsibility is achievable, even with an average salary.
Hannah's financial journey begins with her acknowledgment of a salary below New Zealand's national average. But, her innovative strategy of dividing her income into 16 separate bank accounts sets her apart from her peers. Each account is earmarked for a specific purpose, from paying rent and buying fuel to leisure activities like entertainment and shopping. She has even dedicated an account to fund future aspirations, such as owning a piano, which may seem like a small step but goes a long way in keeping savings and financial health intact.
What makes Hannah's method noteworthy is the combination of fixed and accumulating models. For essential expenses like fuel, she allocates a set amount per month, encouraging users to accumulate any unspent funds for future use. On the other hand, accounts for entertainment and shopping follow an accumulating model, with regular monthly additions to ensure a steady and reliable budget. This ensures a balanced lifestyle without overspending and hampering savings or increasing debt.
Monthly accumulation and smart spending
Although Hannah's financial situation includes passive income as a landlord in addition to her salary, her advice resonates with a wider audience grappling with the challenges created by the rising cost of living. Her inclusion of an account for short-term savings, specifically for depreciating assets, adds an element of practicality to her approach, making it flexible and adaptable to changing financial scenarios.
Beyond personal finance, Hannah also offers advice as a young property owner, and puts emphasis on the importance of treating tenants with kindness and respect in difficult times. This dual perspective, both as a salaried worker and a property owner, adds a balance of perspective to financial insights.
In a world where financial advisors often seem out of touch with the daily struggles that people face, Hannah Koumakis' TikTok tips serve as a refreshing and relatable guide. Her method, emphasizing the simplicity of compartmentalizing funds into separate accounts, challenges the traditional notions of saving. As her TikTok videos gain traction, viewers are left inspired to reevaluate their approach to money management, with the hope that, just like Hannah, they too can create their own financial roadmap to achieve their dreams.
What's the conclusion?
Hannah Koumakis' innovative budgeting hacks have ignited a wave of enthusiasm among viewers worldwide. Her down-to-earth approach and relatable financial journey offer a beacon of hope for those seeking effective and manageable ways to save money in an era where financial stability often feels elusive.