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Vivian Tu, the creator of Your Rich BFF, shares three money-saving tips everyone should know

Vivian Tu, the creator of Your Rich BFF, shares three money-saving tips everyone should know

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Vivian Tu, the creator of Your Rich BFF, has learned a thing or two about saving money.

Over her years working on Wall Street and providing ugly financial advice on social media, Tu has amassed a series of “wealth hacks” that she shares with her 2.6 million followers on TikTok.

A wealth hack is “something that’s a secret that shouldn’t be,” Tu said on Yahoo Finance’s Money Glow Up podcast (watch the video above or listen below), and it consists of information about building wealth, that “most people could benefit from.”

In conversation with podcast host Tiffany Aliche, Tu discussed some of her top money-saving tips—and they may be tips you haven’t thought of yet.

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This may seem like a no-brainer, but maximizing your contributions to your IRA or Roth IRA will pay off in the long run. Not only do the dividends ensure that you are best positioned for future retirement, but the contributions can also be used for tax deductions.

Tu pointed out that if you’ve defaulted, you still have time to make your IRA contributions for the year.

“You can continue to contribute to this year’s IRA or Roth IRA limit well into next year—you just have to do it before tax day,” Tu explained. “If you have a traditional IRA and contribute through April [15]You can actually still deduct this as part of your deductions from your adjusted gross income for your current tax year to get the benefit for you.”

Read more: These are the Traditional IRA and Roth IRA limits in 2024

A woman takes photos of her drink at the newly opened Stars Coffee, a chain that opened in former Starbucks cafes in Moscow, Russia, on August 22, 2022. (Photo by Alexander Zemlianichenko Jr/Xinhua via Getty Images)

A woman photographs her drink at a cafe in Moscow, Russia, on August 22, 2022. (Alexander Zemlianichenko Jr/Xinhua via Getty Images) (Xinhua News Agency via Getty Images)

Enroll in AARP – no matter your age

AARP stands for American Association of Retired Persons, but the minimum age to sign up is actually just 18. This means you don’t have to wait until you’re retired to take advantage of the various benefits available to members, including discounts on amusement parks, flights, oil changes, restaurants, hotels and car rentals.

Membership not only offers discounts on the “fun things,” as Tu calls it, but also incredible discounts on financial services and planning.

“Through a trust and will service provider, you can get a 20% discount on setting up a trust and will,” Tu explained. “You can actually get an analysis of your student loan debt, and they will essentially help you make a plan to pay it off. ..and you get discounted pet insurance, home insurance, health insurance – you name it, AARP has it.”

Read more: I’m a personal finance author and these are my top 11 tips for saving money

A passenger checks in at a desk decorated with panda toys at Istanbul Airport in Istanbul, Türkiye, on June 21, 2023. China's Sichuan Airlines resumed service to Türkiye on Wednesday following the pandemic, with a plane taking off from Istanbul airport to the southwestern Chinese city of Chengdu. (Photo by Omer Kuscu/Xinhua via Getty Images)A passenger checks in at a desk decorated with panda toys at Istanbul Airport in Istanbul, Türkiye, on June 21, 2023. China's Sichuan Airlines resumed service to Türkiye on Wednesday following the pandemic, with a plane taking off from Istanbul airport to the southwestern Chinese city of Chengdu. (Photo by Omer Kuscu/Xinhua via Getty Images)

A passenger checks in at a desk decorated with panda toys at Istanbul Airport in Istanbul, Türkiye, on June 21, 2023. (Omer Kuscu/Xinhua via Getty Images) (Xinhua News Agency via Getty Images)

Tu pointed out that people should negotiate even in small situations. For example, an unsatisfactory flight experience can lead to free miles.

“You should negotiate everything,” Tu advised. “Everything, everything, everything.”

Even big expenses like medical bills or a new house or car can be negotiated, reducing the price by five to six figures – if you’re willing.

“It’s pretty normal to be able to say, ‘I got my house $50,000 under the asking price,'” Tu said. “Do you know how many lattes you don’t have to drink to save $50,000? Just put on your big boy or big girl pants for 10 seconds, have the awkward conversation and really, really work on the negotiations.”

Read more: Can you negotiate a higher savings account interest rate with your bank?

Tu pointed out that saving a ton of money on these big purchases can help alleviate some of the stress of saving — and still allow you to treat yourself to that latte.

“You can have your little joys in the day, but you have to be ready to play and show up when it comes to the bigger moments at the negotiating table,” Tu said.

Every Thursday, Tiffany Aliche – aka The Budgetnista – shares inspiring money stories to help people achieve financial independence and live richer lives To Money lights up. You can find more episodes on our Video Hub or look at yours preferred streaming service.

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