How to do TikTok's January 'financial cleanse'

Gen Zers are tapping into the world of financial literacy, thanks to money influencers on TikTok.

In doing so, advisors are promoting a "financial cleanse" throughout January as the best way to cut down spending in 2023.

One of them is Seema Sheth, the woman who coined the "30-day financial cleanse."

She says her cleansing method is a way to eliminate unnecessary costs, so people have more money in their pockets.

"Maybe you spent more than you wanted to, inflation is high, life feels crazy," Sheth said in a TikTok video.

She further said this is not a means to "get rich quick," promising viewers that they will have "actionable" steps daily to help them gain an understanding of their financial life.

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For day one, Sheth did a demonstration of how to track monthly subscriptions. This was done by breaking them down by type, the cost per month, and the yearly price tag.

However, people have to choose which subscriptions they should keep and cancel the others that don't make the cut.

The following strategy is known as the "bucket budget." Essentially, people's expenses are placed variable and saving and saving categories.

After that, there is discretionary spending, which Sheth says can take time to get under control.

Sheth's financial cleanse will continue throughout January, leaving people grateful for the money tips.

One person wrote: "Here for this kind of content. I love learning, and talking about building a healthy relationship with money."

But after saving, it's also helpful to have a budget.

That's where fellow TikTok page You Need A Budget comes in.

The page is also recognized for making budget-friendly content, launching its own "30-day Money Challenge," focused on helping people "take control of their money."

Some of the tips include setting financial goals and creating spending limits.

"By the end of the 30 days, you'll have a new relationship with money!" one of the video captions reads.

A Credit Karma survey revealed that nearly half of Gen Zers went to social media for financial advice, which is the most out of any generation.

Only a quarter of Gen Zers said they learned more about money and finances from content creators than books or school.

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