A 27-YEAR-OLD has revealed that she has a multiple six-figure net worth and has shared the five money mistakes that many people make.
Michela, who posts on TikTok under the username @breakyourbudget is from Los Angeles and regularly shares her personal finance and budgeting tips and tricks on social media.
In a recent clip, Michela revealed that there are five things that she has cut out of her life that have helped her to save lots of money.
She said: “Five money practices that I’ve cut out of my life as a 27-year-old with a multiple six-figure net worth.
“The first one is keeping any money in a traditional savings account.
“So a traditional savings account pays you like 0.1% on all of the money that you have in it.
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“They are a little bit more convenient but they’re basically a waste of space.
“You do not need one, you should not use one, any cash savings you have, outside of the money that you’ve keeping in your [bank] account should be kept in a high yield savings account.”
Michela went on to explain that she doesn’t actually use a debit card.
She added: “Number two, is that I stopped using my debit card completely.
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“I do carry it with me, just in case I need to access cash or I have an issue with my credit card or Apple Pay, but in general, for 99.9% of purchases that I make, I’m putting them on my credit card and paying them off every two weeks.
“The reason is because with a debit card, you don’t get any points. With a credit card, you can get points, you can get cashback or different rewards on purchases you’re already making, that you can then use in your life to save money in other ways.
“So really if you’re using a debit card, you’re not taking the [pounds] that you’re spending as far as they can go.
“And obviously that means you need to be using a credit card responsibly.”
As well as this, Michela explained that she doesn’t use buy now, pay later services.
She continued: “Number three is using any sort of buy now, pay later app or service.
“I never really used these to begin with but I know they are very popular these days, especially amongst gen-z, because it makes it easier to buy things without having to front all the money at once, but using these services can make it a lot easier for you to spend money that you don’t have or to get into a situation where you didn’t realise how much money you’d spent and how much money you owe.”
Michela urged people to ensure that they pay off their credit cards every month.
She explained: “Number four is carrying any balance on my credit card month over month.
“When I put something on my credit card, I know for a fact that I have the money in cash to pay it off.
“I never put anything on my credit card that I couldn’t pay for in cash and and I do pay my credit card off every two weeks.”
Finally, Michela stressed the importance of spending your money on you, and not what other people want to do.
She advised: “The last thing that I no longer do is spend my money on what other people want me to do, my friend’s hobbies or on things that I don’t like or don’t care about.
“This is something that I know a lot of people struggle with and if you are someone that gives into peer pressure or you find that you spend a lot of money on things that aren’t making you feel good, you’ve got to draw awareness to that habit and you can do so by tracking your expenses.
“Also, learn how to say no to things. It gets a lot easier as you progress.”
Michela’s clip has clearly impressed many, as it has quickly gone viral and has racked up a whopping 1.4million views.
It has 129.2k likes, 1,327 comments and 4,021 shares.
Social media users appreciated Michela’s tips and were eager to reflect this in the comments.
One person said: “It’s mind blowing people don’t do the credit card hack for life.”
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Another added: “I love this! Thanks for sharing on my FYP!”
A third commented: “The last one!!! Once I started only focusing on things I wanted to do/buy I started saving so much. This applies to media peer pressure too.”
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