Viral TikTok Video Sparks Discussion On Budgeting and Innovative Income Solutions
A TikTok user has gone viral with her video that says $100,000 a year is the new $50,000 a year in the inflation-hit world. Her video has been viewed over 1.7 million times and amassed 208,000 likes and 6,969 comments. In the clip, @shayjo21, aka Shay, highlighted the rising cost of living with examples ranging from pricey grapes to half-a-million-dollar homes.
Financial Realities
Statistics from the US Department of Labor reveal that nearly 8.4 million people, or 5.2% of the workforce, held multiple jobs in October, as per a Moneywise report. This is mainly to keep up with the rising inflation. However, for Shay, who can’t do multiple jobs as her legs start to give up, it is significantly difficult to keep up with the rising costs.
Budgeting Wisdom For People Struggling to Keep Up
In response to Shay's video, viewers took to the comment section to discuss practical financial solutions. One woman suggested that people can achieve work-life balance and keep up with costs by living simply and staying on budget. Creating a budget involves allocating funds for necessities, desires, and savings which is a crucial aspect of effective financial management.
Prioritize Debt Repayment
Addressing debts is necessary to cope with the rising cost of living. In a budget, people should prioritize debt repayment to prevent financial penalties and safeguard credit scores. Defaulting on loans can also damage credit scores and hinder people from securing financing in the future.
For people who are struggling to cope with different interest rates on loans from different sources, one solution could be to consolidate all the debt into one single lower-interest loan. Another option could be to look into loan refinancing schemes.
One user also suggested that people should avoid relying heavily on credit cards for purchases that they can’t afford at the time or getting loans that will be hard to pay back. Further, debt should be reduced to escape the high interest rates.
Income Enhancement Strategies
The video also sparked discussions amongst the viewers on various ways to boost income without resorting to a second job. Users gave multiple suggestions like seeking higher-paying employment, negotiating for increased responsibilities, and exploring creative avenues.
People can also explore entrepreneurial avenues that need low investment like selling unused items online. This can create an additional revenue stream for people and unload unwanted assets at the same time. However, the users were wise enough to caution people to consider the new tax and legal implications for selling used items as well.
Another way to boost income can be to rent out spaces that are free like a room in your home or even a parking spot. People can also take in a roommate to get rent and split some of the housing costs as well.
Ultimately, the key takeaway from the TikTok video and the subsequent comments is the importance of managing money wisely. Financial stability has become increasingly elusive, in recent times and individuals are compelled to adopt innovative approaches to secure their financial well-being.
The video highlights the importance of making smart financial decisions, creating thought-out and curated budgets, sticking to a financial strategy, and navigating the economic landscape without adding the pressure of multiple jobs.