How to Navigate Financial Advice on TikTok: A Comprehensive Guide

In the age of social media, discussing personal finance has become increasingly popular. Platforms like TikTok are brimming with content that ranges from everyday budgeting tips to aspirational “what I spend in a day” videos. While many users share valuable insights, it’s crucial to approach financial advice on TikTok with caution. Here, we at O1ne Mortgage provide you with a comprehensive guide to help you discern good advice from potentially harmful recommendations. For any mortgage service needs, feel free to call us at 213-732-3074.

Google It

When you come across a financial strategy on TikTok, your first step should be to verify it through other reliable sources. If a TikToker claims to have a little-known financial secret, it might be obscure for a reason—perhaps it’s impractical or even illegal. For instance, some TikTokers suggest registering a business to write off personal expenses, which can lead to tax complications. Others might advise on selling assets in a brokerage account without paying taxes on gains, which is also illegal.

To ensure you’re following sound advice, cross-check it with reputable sources. Here are some solid resources:

• IRS.gov: The Internal Revenue Service website offers comprehensive information on tax forms, rules, and payment methods.
• ConsumerFinance.gov: The Consumer Financial Protection Bureau provides extensive data on various financial products, including mortgage programs and student loan repayment options.
• Investor.gov: The U.S. Securities and Exchange Commission’s consumer education site covers investment basics and different financial products.
• FTC.gov: The Federal Trade Commission offers guides on debt vehicles and how to avoid scams.

Check Credentials

While anyone can offer general tips on saving money or repaying debt, advice on more complex topics like stock picks should come from experienced professionals. Look for credentials in the influencer’s bio. In fields like real estate, tax planning, and investing, credentials are crucial to ensure the advice is reliable.

Types of financial experts include:

• Certified Financial Planners (CFPs)
• Chartered Financial Analysts (CFAs)
• Certified Public Accountants (CPAs)
• Enrolled Agents (EAs)

Always verify the credentials of the person offering advice to ensure they are qualified to do so.

Look Out for Get-Rich-Quick Advice

Be wary of TikTokers who promise to make you rich overnight. Strategies like day trading can be risky and may result in significant financial losses. While it’s natural to feel curious or experience FOMO (fear of missing out), remember that sustainable financial growth comes from creating a budget, building emergency savings, paying down debt, and investing in retirement plans.

If you’re unsure about your financial path, consider consulting a financial planner—preferably one you find outside of TikTok.

Figure Out the Motive

Not all financial advice on social media is bad. Many legitimate public figures and advisors use these platforms to promote financial literacy. However, some individuals might be motivated by the potential for financial gain or the desire to amass a following. Understanding the motive behind the advice can help you determine its legitimacy.

Beware of Guarantees

In the world of finance, very few things are guaranteed. Past investment performance doesn’t predict future results, and flipping real estate isn’t always profitable. If a TikToker guarantees a strategy will work, proceed with caution. Even if the influencer has been successful, many variables can affect the outcome of a financial move.

The Bottom Line

While TikTok is a hotbed for financial advice, not all of it is worth following. It’s essential to vet the information you come across. Cross-check recommendations with other sources, review credentials, and consider consulting with a financial advisor to ensure you’re making informed decisions.

At O1ne Mortgage, we are committed to helping you navigate your financial journey. For any mortgage service needs, call us at 213-732-3074. Our team of experts is here to provide you with reliable and trustworthy advice.