If You’re Struggling With Money, Watch This

KEYPOINTS

• 01

  Money is power and freedom, and few money mistakes are permanent

  Vivian Tu (Your Rich BFF) frames money as the ability to leave a bad job, a bad relationship or a bad apartment. Her opening message to anyone struggling: there are very few financial mistakes you can't come back from, and it's never too early or too late to start. She grew up without money and at 21 waited at a bar until her 12:01 a.m. direct deposit cleared to pay her tab.

• 02

  It's expensive to be broke, and trying to look not-broke makes it worse

  Vivian's lessons from being broke: overdraft fees fall on the people who have the least, and money works as a 'moral measuring stick', so people overspend to prove they're fine. On a trading desk with a brand-name title but no family safety net, she compared herself to peers buying apartments. She says the thing she changed most was keeping up with the Joneses.

• 03

  You can't budget your way out of paycheck to paycheck

  If you're genuinely spending only on necessities on a 40-hour job, Vivian says it's an income problem, not a spending problem, and she doesn't think it's fair. You have two levers: earn more where you are (negotiate a raise, get promoted, or job-hop for a better salary) or add a side hustle. She admits this is hard for people already exhausted by work and caregiving.

• 04

  But first, audit last month's spending honestly

  Ask whether everything after taxes went to necessities or whether there were purchases you regret. Return what you can. Look for patterns like lash and nail appointments, sports betting, or front-row concert tickets when general admission would do. She's clear she isn't asking you to cut every joy forever, just to see where the money actually goes.

• 05

  Pay yourself first by automating the split

  Instead of letting 100% of your paycheck land in checking, where you'll find a way to spend it, send 90–95% to checking for rent and bills and 5–10% straight to savings. If you can't change direct deposit, set a transfer for a set amount on payday. Freelancers should move 10% to savings and 30–40% to a tax pot when each invoice is paid. Mel's framing: broke you pays rich you every time money comes in.

• 06

  Keep savings in a high-yield account

  Vivian puts the national average savings rate at 0.37%, so $100 becomes $100.37 after a year. High-yield savings accounts were paying roughly 3–4%, about $103 on the same $100. An emergency fund of around three months of expenses 'isn't sexy', she says, but it lets you sleep at night and turns a shock into an inconvenience.

• 07

  Ask for a raise with a 'brag book'

  Vivian keeps an inbox folder ('Brag Book 2026') for every congratulation and win. She grinds from July to October, then meets her manager with receipts: a short recap of team success and examples of goals she hit, followed by the ask. The point is to make the case with evidence before budgets are set.

• 08

  Find your FU number: perfect-year cost divided by 0.04

  Picture one perfect year (where you live, who you support, what you do) and price it, then divide by 0.04. The result is how much you'd need invested for investment income to replace work income, based on a 4% withdrawal rate. Mel's check: $1 million at 4% gives about $40,000 a year. Vivian says don't panic. Over-50s can make extra 'catch-up' contributions to retirement accounts.

• 09

  Investing cheat code: a robo-advisor

  If account types confuse you, sign up for a robo-advisor, which takes about 45 minutes. Pick the account type, answer questions about income, savings, debt, how you'd feel about losses and when you plan to retire, and it builds and manages a portfolio. Use retirement accounts for retirement and an individual brokerage account for 20–25-year goals that aren't retirement.

• 10

  Buying a home is a values and lifestyle decision, not a milestone

  Buy if you're sure about the place for at least 5–7 years. Rent if you'd hate fixing a toilet at 2 a.m. or paying HOA fees. Don't buy because your parents or friends did. Vivian also notes that home ownership forces saving and is a key route to generational wealth in the US, that a 20% deposit isn't mandatory (FHA loans and 'conventional 97' mortgages exist), and that you can buy an investment property somewhere cheaper while you rent.