New York Times bestselling author and your Wall Street wealthy girlfriend Vivian Tu shares her financial tips

The New York Times bestselling author and former Wall Street trader and financial influencer Vivian Tu (nicknamed “Your Wealthy Girlfriend on Wall Street”) answers readers’ questions on Wired, sharing her unique personal financial advice. Tu offers various solutions regarding current popular consumption patterns, interpersonal financial boundaries, and asset allocation.

The trap of “Enjoy Now, Pay Later” installment spending

Currently, there are multiple Buy Now Pay Later (BNPL) financial models in the market, originally intended to provide credit to underserved communities, helping them purchase appliances or work equipment. However, this business model has gradually shifted toward predatory practices. Many companies promote low-limit installment payments for inexpensive snacks like tacos, allowing consumers to accumulate debt unconsciously. If users fail to repay on time, their credit scores will suffer, and they will face high interest rates. Tu recommends avoiding this type of spending.

Save on small expenses that can add up and stay mindful of your spending

Spending five dollars daily on coffee may not directly determine whether someone becomes a millionaire within a year, but the “drip effect” should not be underestimated. Blind spending is often a major cause of cash flow loss. If the expense serves a specific purpose or boosts work motivation, it can be justified; otherwise, if it’s unconscious follow-the-crowd spending, the money should be transferred into an investment account. Through mindful spending, investors can ensure their funds go toward more meaningful future uses, safeguarding long-term financial security.

Is “Your Money” really “My Money,” or is “My Money” still “My Money”?

Regarding financial management between partners, Tu advocates the “Your, Mine, Ours” strategy, believing it’s a flexible and healthy way to maintain relationships. Joint accounts can simplify sharing fixed expenses like mortgage, utilities, and vacations, but they also carry significant risks. If a partner has bad habits (such as gambling addiction), funds in the joint account could be legally taken without recovery. Therefore, maintaining independent emergency funds is crucial.

What is Loud Budgeting?

Loud Budgeting has recently gained attention. It doesn’t mean bragging about poverty but rather being transparent about personal financial goals. When faced with expensive social invitations, like overseas weddings or parties, one should honestly communicate their financial priorities—saying, “I’m currently focused on paying off debt or purchasing specific assets”—rather than pretending to be wealthy. This helps filter out unhealthy social pressures.

Tu points out that social media often showcases luxury lifestyles that don’t match actual income, making it seem like everyone has private jets and travels the world. Excessive exposure to such content can cause financial anxiety. It’s advisable for the public to carefully discern the motives behind influencers’ posts.

Start budgeting as soon as your salary arrives

Building a solid financial foundation can reduce decision fatigue. Tu suggests automating allocations when your paycheck is deposited, such as dividing your income into different accounts based on a set ratio. The common “50/30/20 rule” is an effective guideline: 50% for essentials like housing, transportation, and food; 30% for entertainment and personal hobbies; and 20% for debt repayment and future investments. Using high-yield savings accounts and adding barriers like changing passwords randomly can help prevent unnecessary withdrawals from emergency funds.

Prepare 3–6 months of emergency savings

Vivian Tu advises caution when using AI tools for financial advice, noting that generic tools are not regulated professional advisors and may provide biased information. For assets like art, wine, or trading cards, understand that their liquidity is much lower than stocks or real estate. Their value depends entirely on market demand, and during economic downturns, the market for non-essential collectibles often suffers first. Ultimately, a healthy financial system should be built on an emergency fund, ensuring individuals have three to six months’ worth of living expenses to buffer against unexpected medical costs or unemployment.

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This article featuring New York Times bestselling author and “Your Wealthy Girlfriend on Wall Street” Vivian Tu sharing her financial wisdom first appeared on Chain News ABMedia.