<ul class="summary-list"><li>Finance content is gaining steam on <keyword id="6762469" type="General" weightage="100" keywordseo="tiktok" source="Orion">TikTok</keyword> with money advice racking up millions of views.</li><li>But so-called finance gurus get a lot wrong, experts told Insider.</li></ul><keyword id="144248" type="General" weightage="50" keywordseo="videos" source="Orion">Videos</keyword> tagged with #finance have over 17 billion views on TikTok, so it's fair to say a lot of people are turning to the platform for advice about their money. But just because a video is popular, doesn't mean its advice is good, experts told Insider. <keyword id="19023179" type="General" weightage="50" keywordseo="eric-croak" source="Orion">Eric Croak</keyword>, president of the wealth-management firm <keyword id="1271723" type="General" weightage="80" keywordseo="croak" source="Orion">Croak</keyword> Capital, told Insider that some traditional investment techniques "are a little archaic," and TikTok offers a way to modernize. But it's moving "too fast," he said, noting that its advice is unregulated. "So it's a double-edged sword," he said. "You don't know who to trust and there's no way to find out." Some viral saving methods on TikTok right now include "cash stuffing," where you withdraw cash and put it in envelopes for different needs, like rent, utilities, or eating out. There is also the 50-30-20 method, which breaks down post-tax income into needs, wants, and savings + debt into the respective proportions. Another it the "last three digits" challenge — transferring the last three digits of your bank account balance into a savings account every day for a year. These techniques are generally solid and can yield noticeable results, according to Brian Chevalier-Jordan, the chief marketing officer at the business-loan company <keyword id="19023180" type="General" weightage="50" keywordseo="national-business-capital" source="Orion">National Business Capital</keyword>. The cash-stuffing method, for example, is "simple, visual, and easy for anyone to adopt." "Good, helpful advice on TikTok tends to include simple, clear and easy-to-replicate steps," he said. "However, big problems emerge when people promote complicated, risky, or challenging-to-implement financial strategies." On TikTok, everything is about getting rich quick, Croak said, but "80% of the time they're wrong or they're just not showing the underlying negatives." "They cast these things in such a pretty light without showing what could happen on the back end," he said. For example, there are life-insurance salesmen "all over TikTok," Croak said, selling <a target="_blank" href="https://www.businessinsider.com/personal-finance/indexed-universal-life-insurance">indexed universal life (IUL) insurance</a> and promising large returns. Others push the concept of "infinite banking" — becoming your own bank by taking out loans against a permanent life-insurance policy. These methods can generate profits, but it usually takes experience and knowledge to do so without creating problems. "These guys are coming up here saying, 'Hey, there's no risk to doing this, this is what rich people are doing,' and they go through this whole spiel," Croak said. "TikTok essentially blasts this information out to the masses, to people that don't have the experience or necessarily the money to be able to invest in stuff that has that high-risk outlook." Unregulated areas like cryptocurrency and complex real-estate deals are another big problem on social media in general, promising big rewards that are often unfulfilled. What grabs attention and generates views isn't necessarily going to be the best financial advice, Croak said, because investing is, at its core, dull. "Investing should not be that fun," he said. "My job is so boring most of the time. Like, 'Hey, stick to the plan, don't change things.' And that does not work as well on social media." With <a target="_blank" href="https://www.insider.com/tiktok-rife-money-scams-3-to-avoid-2023-9">scams so rife</a> on social media in general, anyone who wants to start their investing journey would likely benefit from turning to experts, at least at the beginning. When it comes to who to listen to, Croak said you should always think about "who is paying the bills" for that advice. From there, try to work out if the products and methods they are recommending are lining their own pockets at your expense, even if it doesn't seem like it costs you anything. "For every financial product out there, there's a trade-off," Croak said. "For every winner, there's a loser. And so finding out what the negative consequences could be to every investment choice at least puts you in a well-educated position, to make decisions that work for you."

Everything finance TikTok gets wrong about saving money, according to experts

<img src="https://static-ssl.businessinsider.com/image/5e2f23495bc79c03b9465782-2121/gettyimages-1055857216.jpg" alt="family of three" />Attila Csaszar/Getty ImagesNo matter how you define "wealth," it can be helpful to work with a financial planner to define your goals and develop an action plan that works for your lifestyle.<ul class="summary-list"><li>Being rich doesn't necessarily mean having a big account balance, according to financial planners.</li><li>We spoke to nine experts who defined "wealth" in many different ways, from being able to give generously to buying back your time.</li><li>One <a href="https://www.businessinsider.com/how-to-choose-a-financial-planner-guide">financial planner</a> told us that some individuals with millions of dollars will never feel "rich" because no amount of money is ever enough.</li><li><a href="https://smartasset.com/retirement/find-a-financial-planner?utm_source=businessinsider&amp;utm_medium=cpc&amp;utm_campaign=bus__falc_bicontent&amp;utm_content=bipfi_define_rich" rel="nofollow">A financial planner can help you set money goals and reach them. Use SmartAsset's free tool to connect with a qualified financial professional today »</a></li></ul>What does it mean to be rich? The answer probably depends on who you ask. For some people, wealth might mean the ability to buy whatever they want. For others, it might mean living without debt. And to some people, being rich might have nothing to do with money at all. <a href="https://www.businessinsider.com/financial-planner-changed-the-way-think-about-spending-and-saving">Financial planners</a> are in a unique position to define "rich" - they work with people across the financial spectrum, from <a href="https://www.businessinsider.com/strategies-from-cfp-to-save-more-and-spend-less">young couples starting to buy homes and plan for retirement</a> to the super elite, so they have a particular understanding of what it means to be wealthy.Curious how people who deal with money all day define "wealth"? Here's what being rich means to nine <a href="https://www.businessinsider.com/do-i-need-a-financial-planner-money-help">certified financial planners</a> (CFP).<h2>Being financially free and comfortable </h2>CFP Jeff Rose, founder of the wealth management firm <a href="https://www.goodfinancialcents.com/">Good Financial Cents</a> and regular <a href="https://www.businessinsider.com/author/jeff-rose">Business Insider contributor</a>, says that for him, wealth is all about living with financial freedom. "Wealth means enough to live happily and comfortably without the fear of not having enough money," he says. But he emphasizes that this comfort isn't just about having lots of money - it's about knowing when and how to spend it. "Giving back to the community by donating funds sometimes scares those with money because of the fear of losing financial security," he says. "Part of having money is celebrating its value by sharing it with others, and this goes hand in hand with good financial health."<h2>The ability to meet your spending needs and wants</h2>Everyone has different expenses - and different aspirations. Denver-based CFP <a href="https://www.lizwindisch.com/">Elizabeth Windisch</a> says wealth isn't about the money you have in your bank account, but whether you can meet most of your spending needs and wants with that money. "Some people with millions and millions of dollars will never be rich, because no amount of money is ever enough for them," she says. "I've had other clients who, by traditional standards, don't have a lot of money, but they are thrilled with their life and have everything they want."<a href="https://smartasset.com/retirement/find-a-financial-planner?utm_source=businessinsider&amp;utm_medium=cpc&amp;utm_campaign=bus__falc_bicontent&amp;utm_content=bipfi_define_rich" rel="nofollow">Talk to a financial planner today to make a plan to reach your financial goals. Use SmartAsset's free tool to connect with a qualified professional »</a><h2>The need to plan for succession</h2>While CFP Dillon Ferguson, financial head of product at <a href="https://zoefin.com/">Zoe Financial</a>, recognizes that real wealth is a mindset, he says someone is technically wealthy when they need to make plans for succession. "If you have to think about putting together an estate plan, you're likely in the rich category," he says.<h2>Being financially comfortable enough to meet your own goals </h2>Wealth is subjective, so comparing your financial situation to another person's isn't helpful. CFP <a href="https://www.pricefinancialgroup.com/team/emily-boothroyd-jd-cfp-cdfa">Emily S. Boothroyd</a> says she sees wealth as relative: You can earn $1,000,000 a year, but if you're spending $1,000,000, you have a lower net worth than someone making $100,000 and spending $80,000. "When you are financially comfortable enough to meet your personal goals, have a plan in place to not outlive your money, and feel freedom when it comes to money, that's a rich life to me," she says. "Trying to attain someone else's version of rich usually only makes for an unhappy person with a nice bank account."<h2>The ability to make decisions without considering money </h2>When money is no longer your primary consideration for decision-making, CFP Eric Croak of <a href="https://camtoledo.com/">Croak Asset Management</a> would consider you to be rich. "A wealthy person has the ability to walk away from a job without wondering if they can eat dinner the next day, month, or even year," he says. "Wealth allows people to work towards their passion instead of their survival, which leads to higher levels of happiness and self-worth."<h2>Being able to spend on your personal values </h2>Misty Lynch, a CFP with <a href="https://beckbode.com/">Beck Bode</a>, says being rich means having the ability to spend on things that reflect your personal values. For example, as a parent who values family and education, Lynch enjoys being able to donate books to her children's schools' classrooms. "It's not a house in the Hamptons, but it makes me feel rich when I can use my money to have an impact!" she says.<h2>Enjoying what you have </h2>Yes, being rich means having enough money to cover your lifestyle and fund your goals. But to Brittney Castro, a CFP with <a href="https://www.mint.com/">Mint</a> and <a href="https://turbo.intuit.com/">Turbo</a>, wealth is also an awareness of your abundance. "Living a rich life is living in a way where you feel full of love and happiness, and you are able to enjoy the material things in your life as you desire," she says.<h2>The ability to quit working and maintain the same lifestyle </h2>For Matthew Hamilton, CFP and CEO of <a href="https://hamiltoncapital.com/">Hamilton Capital</a>, true wealth is having amassed enough financial resources to quit working whenever you choose, to maintain the same lifestyle through retirement, and to have a larger investment portfolio at the end of retirement than at the beginning. "We believe it comes down to how effectively <a href="https://www.businessinsider.com/what-is-compound-interest-your-best-friend-or-enemy">investment returns compound over time</a>," he says. "This is the focus of our investment portfolios, and how we judge success."<h2>Having time freedom </h2>Dan Routh, a CFP with <a href="https://oldpeakfinance.com/">Old Peak Finance</a>, equates true wealth to time freedom - having the financial ability to delegate activities in your life that you don't value or enjoy. For example, if you hire a house cleaner once a week so you can have more time with your family on the weekends, you might be wealthy. "Wealthy people spend time doing things they enjoy and delegate everything else," he says. "They work on things they're passionate about, even if they make less money, they travel if and when they want to, and they spend as much time with their family as they please."<h3><a href="https://smartasset.com/retirement/find-a-financial-planner?utm_source=businessinsider&amp;utm_medium=cpc&amp;utm_campaign=bus__falc_bicontent&amp;utm_content=bipfi_define_rich" rel="nofollow">A financial planner can help you set money goals and reach them. Use SmartAsset's free tool to connect with a qualified financial expert today »</a></h3><ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/financial-planner">financial planner</a> coverage</li><li><a href="https://www.businessinsider.com/everything-you-need-to-know-about-financial-planners">Everything you need to know about financial planners</a></li><li><a href="https://www.businessinsider.com/do-i-need-a-financial-planner-money-help">5 times you should consider meeting with a financial planner</a></li><li><a href="https://www.businessinsider.com/financial-advisor-worth-the-cost-for-money-advice-2019-7">People with a financial adviser say they aren't just better with money - they're happier with life overall</a></li><li><a href="https://www.businessinsider.com/how-much-is-a-financial-advisor-fee-structure">Here's how much a financial adviser costs</a></li></ul>Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team. <h3>NOW WATCH: <a href="https://www.businessinsider.com/how-billie-eilish-harnesses-the-power-of-asmr-2019-10">How Grammy award winner, Billie Eilish, harnesses the power of ASMR in her music</a></h3> <iframe class="bijwplayerclass" src="https://content.jwplatform.com/players/H4IiRDQj-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;"></iframe>

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Everything finance TikTok gets wrong about saving money, according to experts

Lindsay Dodgson

What it means to be rich, according to 9 financial planners who would know

Ashley Abramson,Ashley Abramson