Why does uncertainty make us much less rational with cash? And who ought to we belief for monetary recommendation on-line? Vivian Tu, monetary educator and CEO of Your Wealthy BFF, breaks down at present’s private finance dangers and alternatives, from “way of life inflation” and the most typical cash errors good individuals make to how Gen Z is navigating 2026 volatility and a shifting job market.
That is an abridged transcript of an interview from Rapid Response, hosted by the previous editor-in-chief of Quick Firm Bob Safian. From the crew behind the Masters of Scale podcast, Fast Response options candid conversations with at present’s high enterprise leaders navigating real-time challenges. Subscribe to Fast Response wherever you get your podcasts to make sure you by no means miss an episode.
Right this moment there’s a lot uncertainty—in costs, jobs, politics. Do you see that shaping how individuals behave with their cash? Are they much less rational in monetary decision-making?
It’s like, effectively, for those who don’t suppose you’re going to have the ability to afford a house otherwise you don’t suppose you’re going to have the ability to go on that precise trip you need, it turns into just like the Estée Lauder lipstick index of, “Oh, effectively, I can’t afford a brand new TV, so I’m going to go to the pharmacy and get myself a little bit lipstick.” Or, “I’m in a greenback dribble for a little bit espresso, I’m going to do that.” You’re spending on issues that you’ll not finally derive true happiness out of, true pleasure, true pleasure, simply to get a dopamine hit. When you find yourself able of uncertainty, it’s extra essential than ever to have a plan, as a result of for those who simply depart it as much as hope, it’s not going to get you there.
A lot of people are utilizing AI instruments as of late for monetary selections, budgeting, investing, even taxes. However lots of surveys say that for lots of those people, it’s led them to some dangerous selections typically. The place do you suppose AI can genuinely assist with cash? The place ought to we be extra cautious?
Effectively, I wish to be very clear that not one of the AI LLMs, just like the ChatGPTs of the world, none of them are financially licensed. To not be so self-serving, however that’s partially why I constructed out my enterprise referred to as Ask Dolly. Askdolly.com, test it out. We are literally an SEC-registered RIA, and for those who ask Ask Dolly too complicated of a query that isn’t knowledge-based, however fairly personal-based, we switch you to one in all our CFPs.
I simply wish to say RIA is “registered funding advisor.” CFP is “licensed monetary planner,” proper?
Oh, sorry, guys. Yeah.
We noticed that AI is the subsequent iteration of monetary exploration and it actually does assist individuals on their monetary journeys. They get to ask the embarrassing questions that they’re too ashamed to ask. However I don’t suppose that AI can function independently of a little bit little bit of human contact, and admittedly, somebody who’s licensed to supply you monetary recommendation, as a result of it’s so private and there are such a lot of elements to consider.
There are lots of people on-line, creators like your self who supply monetary recommendation. Not all of them are licensed.
Respected.
Or registered. How are you aware if one thing you come throughout on a social platform or on-line, that it’s respected, that it’s worthwhile? We get this with well being recommendation, we get with cash recommendation.
What I say is, even with my content material, for those who see one thing and also you’re like, “I ponder if that is true,” it’s essential be doing your personal analysis. Watch my video after which go browsing and test, “Can I discover three respected sources that again up what she’s saying?” You’ll all the time have the ability to as a result of I really analysis my subjects. However go take a look at articles from The Wall Avenue Journal, from the Monetary Occasions, from Barron’s, from legislation corporations or banks. Evaluate them. We’ve got unfettered entry now, so there isn’t any excuse for falling for a lure. You really must do your personal analysis.
And you need to perceive how the individuals who you’re participating with, how they make their cash, proper?
Precisely. Precisely.
Are there belongings you’ve discovered as a creator your self that you just suppose individuals don’t actually perceive about how creators generate profits?
Yeah, 100%. You marvel why all of these way of life influencers have been pushing Stanley Cups and all the little charms that then go on the Stanley Cup after which all the—they make an affiliate fee on the backend. She doesn’t love her Stanley Cup, she desires you to purchase one so she will get cash.
I all the time am very, very sincere. After I do model partnerships, I’m like, “These maintain my content material free. That is why you don’t must pay a subscription payment for this. That is why I can do all of this editorial work unpaid: As a result of I generate profits.” However on the finish of the day, whether or not or not you get the high-yield financial savings account I like to recommend, it is best to simply get one anyway.
Are you saying that Matt Damon and Ben Affleck don’t love Dunkin’ Donuts? Is that what you’re saying?
I’m saying that I’ve tasted Dunkin’ Donuts espresso. It’s good, however it’s not the one espresso on the market.
I’d like to ask you a couple of fast hearth questions if I can, get your recommendation on issues.
Let’s do it.
All proper. So what’s the most important cash mistake that good individuals make?
I believe it’s simply way of life inflation, particularly for individuals who begin to earn more money. You make a little bit bit extra money, you spend a little bit bit extra money, you make a little bit bit extra money, you spend a little bit bit extra money, and on the finish of the 12 months you’re like, “How come I don’t have any further cash saved?” All of us fall sufferer to the comparability lure the place we evaluate our lives with everyone we see on social media, and all of the sudden you suppose that for those who don’t have X, Y, and Z, you’ve a nasty life. You don’t must be spending on stuff simply to impress different individuals.
All proper. Subsequent query. If I might concentrate on only one factor financially this 12 months, what ought to it’s?
Making an attempt to extend your earnings, as a result of my mentor advised me this one line and it’s caught in my mind endlessly, she stated, “You may solely save as a lot as you earn, however you possibly can all the time earn extra money.” We discuss a lot like, “Minimize out the avocado toast, don’t purchase the latte, don’t get the little deal with.” Think about what number of little joys in your life you would need to minimize out to avoid wasting $5,000. Now think about how straightforward it’s to ask for a $5,000 increase. Frankly, individuals get a lot bigger raises than that. It’s so a lot simpler for you to earn more money than to try to minimize each little factor out.
House possession. Hire or purchase in 2026? How can we determine?
That is an insane query as a result of actual property is so geographically targeted. I can’t sit right here and be like, “It’s best to hire or purchase.” I don’t know the place you reside. And in some instances, the reply is completely different based mostly on the place you reside. What I do know is that it’s at the moment cheaper to hire than purchase in 70% of all main metros. And albeit, we should always all be our personal life and asking ourselves a pair questions.
One, can we plan on being right here for longer than 5 to seven years at a minimal? If not, you’re not shopping for. Are you able in your profession to probably have the chance to make large leaps and bounds for a little bit little bit of flexibility? So is there an opportunity you is likely to be transferred to the Tokyo workplace? You with the ability to be versatile is likely to be the explanation why you get that place versus any person else, and having that flex would possibly make it easier to. So renters win.
However there’s something to be stated about constructing fairness. Ask your self this query. Do you wish to construct that fairness in your main residence or would it not be smarter to perhaps simply purchase an funding property someplace that may be a little cheaper after which persevering with to hire your main residence? In case you are planning on constructing out a household and you actually wish to paint the partitions and also you wish to have the nursery and also you wish to do all of this stuff, perhaps renting is just not the precise transfer. Perhaps you wish to purchase.
Once more, we return to that 5 to seven years at a minimal, as a result of the mounted prices of shopping for a house are very costly. You have got mortgage origination charges and also you’ve bought to pay some dealer charges. You’ve bought to pay fee-fi-fo-fum. When you’re going to pay all that, you’ve bought to be staying there for at the very least a little bit bit.
