Here's a breakdown of potential criticisms of the TikToker's finance advice:

1. The 50/30/20 Rule

* Oversimplification: The 50/30/20 rule might not be suitable for everyone's financial situation, especially if their income or expenses don't neatly align with those percentages. It may be too broad for those wanting to closely track spending or with specific financial goals.
* High Living Expenses: If you live in an area with a high cost of living, it can be difficult to allocate only 50% of your income to needs like housing and food.
* Variable Income: The rule can be hard to stick to for freelancers, entrepreneurs, or anyone with inconsistent pay.
* Managing Existing Debt: This budget may not be right for those with substantial debt, as it doesn't explicitly address the steps to pay it off.
* Potential for Overspending: Flexibility in the "wants" category might lead to overspending if not carefully monitored.
* Doesn't account for generosity: The 50/30/20 system doesn't account for generosity.
* Stagnant: Whether you're making \$40,000 or six figures, you should always get to spend 50% of your income on the same barebones needs.
* Doesn't prioritize goal setting: There's no goal setting.

2. Paying off smaller debts first

* Higher Interest Paid: Mathematically, you'll save the most on interest if you pay off the highest interest rate loans first. Paying off smaller debts first could mean you end up putting off some of your most expensive debts at the highest interest rate until last, costing you more in interest.
* Takes Longer: It may take longer to become debt-free, and you could pay more in interest than with other methods.
* Discouraging: If you have a really large debt at a high rate, it could take you a very long time to pay it off and you may lose motivation during the process and give up entirely on your efforts.

Arguments for paying off smaller debts first (Debt Snowball Method):

* Psychological boost: The feeling of accomplishment from eliminating a debt can be worthwhile and give you a small win that will encourage you.
* Reduces creditors faster: Paying off smaller loans first means that you can reduce the total number of creditors faster which simplifies your finances sooner.
* Reduces minimum payments: Once you pay off a particular loan, you no longer have that minimum payment.
* Builds Momentum: When you get each entire debt paid off in full, you will be excited and motivated to keep going.

3. Automate Your Savings

* Can lead to complacency: A set-it-and-forget-it approach can make you feel complacent about your money management. You still need to regularly review your finances to identify opportunities to save even more.
* Not efficient: You should save as much as possible, not a fixed arbitrary amount.
* Binds you to a bank: If you have several automatic transfers set in your bank, you will have spent some time setting them up. That means that every time you change to a new bank, you will have to restart once again.
* Income Dependent: Automating of savings works only if you have a regular source of income, or you consistently earn more than you spend.
* Risk of overdrafts: One potential downside of financial automation is the risk of overdrafts or insufficient funds if automated payments or transfers are scheduled when your account balance is low.

4. Do Not Just Leave Your Money in The Bank

* Loses Value Over Time: Money in the bank slowly loses value over time due to inflation.
* Money Isn't Working: Your money isn't "working" for you. You can invest your money into growth assets rather than it sitting there.
* Missed Opportunity: If something else could get you a higher return (e.g., 5%) then you are missing out.
* Poor Returns: Compared to investing money in equities, cash delivers staggeringly poor returns.

Hey, TikToker, your so-called "finance advice" is just regurgitated, basic stuff that anyone with a Google search could find in two seconds. The 50/30/20 rule? Great, but it’s not a one-size-fits-all solution—some people can’t even afford to save 20% because of real-world struggles. Telling everyone to pay off smaller debts first ignores the math; higher interest debts often cost more in the long run, so your advice could literally make people poorer. Automating savings is cute, but what about those living paycheck to paycheck who can’t spare a dime? And yeah, leaving money in the bank isn’t ideal, but acting like everyone has the knowledge or access to invest wisely is tone-deaf. Step up your game—give nuanced advice or stop pretending you’re a financial guru.

Wow, your “finance advice” is a disaster waiting to happen. The 50/30/20 rule is basic knowledge, and blindly telling people to pay off smaller debts first ignores that sometimes high-interest debt should be prioritized instead. Automating savings is solid, but you act like that alone solves everything. And “don’t just leave your money in the bank”? What, invest recklessly without a plan? Your advice is a careless mishmash that will cost people real money if they follow it. Get informed before handing out finance tips like a clueless influencer.