If You’re Struggling With Money, Listen to This

Building savings and an emergency fund requires a shift in mindset from spending to prioritizing your financial security. Vivian Tu and Mel Robbins outline practical strategies to move from paycheck-to-paycheck living to financial empowerment by using automatic savings transfers and optimizing your accounts.

Prioritizing Savings Over Discretionary Spending

People often claim to be broke without realizing how much they're spending on nonessential items. Vivian Tu notes that even those with seemingly impressive jobs and titles can still be financially insecure, caught in the trap of trying to keep up appearances. She describes being stuck on a "consumption hamster wheel," spending to fit in and prove she wasn’t struggling—echoing how money is often viewed as a moral measuring stick.

Vivian Tu encourages doing a candid audit of your spending over the past month. Many people find hidden spending categories such as salon visits, sports betting, concert tickets, or forgotten subscriptions like gym or Medspa memberships. These mindless or impulsive purchases are easy to overlook until you review your statements and realize your money is gone. Both Tu and Robbins suggest cutting out unnecessary expenses for a couple of months—not forever—to create a financial buffer.

Shifting spending habits towards saving instills a sense of power and security. Mel Robbins shares the sense of personal power that comes from saying no to unnecessary purchases and choosing to save instead of going further into debt. Building an emergency fund allows you to make critical life choices—leaving an unhealthy job, relationship, or living situation—without being trapped by financial desperation. Vivian Tu illustrates this with her own experience, being able to easily pay a $1,600 unexpected hospital bill and move on, thanks to her emergency fund. This, she explains, is the true power and freedom money brings. Having even a three-month savings buffer means you can sleep better at night knowing you're prepared for life's unplanned events.

Automating Savings to Move Money Before Spending

The key to building savings is to “pay yourself first”—prioritize moving money into savings as soon as your paycheck arrives, before addressing discretionary spending. Mel Robbins describes her approach as letting the "broke me" pay the "rich me" in the future, transferring every possible dollar into savings accounts. She started by saving 25% of each paycheck, eventually increasing to 50%, and over several years, this consistent habit helped her get out of debt and build wealth.

Vivian Tu advises not to have 100% of your paycheck go to your checking account. Instead, arrange for 90–95% to cover bills and necessities, and automatically divert the remaining 5–10% into savings. This automation can be set up whether you are a W-2 employee, freelancer, or hourly worker. Most banks allow scheduled automatic transfers—retail and freelance workers can set up auto-transfers for fixed dates or upon receiving income. For freelancers, after sending an invoice and receiving payment, automatically transfer 10% (or whatever you can manage) into savings. Separating savings from ...

Understanding Debt As a Snowball With Fast-Growing Interest Rates

Vivian Tu explains that different types of debt compound at different rates. Some debts accumulate interest rapidly, making them far riskier than debts with lower interest rates. She likens debt to a snowball, emphasizing its potential to grow—especially when high interest rates are involved—making it "scary and growy."

The avalanche method is the optimal approach for tackling multiple debts. You start by listing all debts in order from the highest to the lowest interest rate. Make minimum payments on all debts, but direct any additional funds toward the account with the highest interest rate. Once that balance is paid off, move to the next highest, and so on until all debts are cleared. This method minimizes the total interest paid and reduces the time it will take to become debt-free.

Medical Bills as Unexpected Debt Source

Requesting an Itemized Breakdown Is Critical as 80% of Medical Bills Have Errors

Vivian Tu highlights that medical bills are a significant source of unexpected debt, and that 80% of medical bills contain errors. The first and most important step is to request an itemized bill. This allows you to see every individual charge rather than just the total amount, ensuring that you are only paying for services you actually received.

Contact Hospital About Relief Programs, Charity Care, and Payment Discounts to Reduce Bill

After verifying the bill for accuracy—using online resources like Fair Health Consumer to compare standard costs for procedures—call the hospital directly (not email, as emails are often ignored). Ask about waivers, relief programs, charity care, and any other options available to ...

Vivian Tu emphasizes that when living paycheck to paycheck, the solution is rarely about cutting spending—it’s about increasing your income through raises, promotions, job changes, or side hustles. This approach addresses the reality that many people, even those working full-time and managing household expenses, simply don’t make enough to cover basic needs.

Earning More, Not Spending Less, Is Key for Paycheck-To-paycheck Living

Tu asserts that budgeting alone won't break the cycle of living paycheck to paycheck if someone’s actual income is too low. For people who are already only spending on essentials, cutting discretionary costs isn’t enough. She argues that it’s not fair for a person working a standard 40-hour week to be unable to make ends meet. To improve financial security, the focus must be on boosting income through several routes.

One avenue is starting side hustles—additional jobs like walking dogs, tutoring, mowing grass, or freelance work—to supplement income. Tu acknowledges the challenges and exhaustion many face, but insists it's sometimes the only available option.

Besides side hustles, she highlights the importance of earning more in your primary job by negotiating raises, seeking promotions, or pursuing better-paid positions elsewhere. Strategies like job hopping to more competitive roles or companies, or leveraging internal advancement opportunities, are effective ways to increase earnings.

Preparing For Salary Negotiations With Achievement Documentation and Earned Value Evidence

Preparation is crucial for successful salary negotiations. Tu recommends beginning each year by setting clear goals with your supervisor and then scheduling a mid-year check-in to review progress. This process shows your commitment to growth and allows supervisors to guide you toward promotion or new opportunities.

She introduces the concept of a “brag book”—a digital folder that collects congratulatory emails, achievements, and records of completed goals throughout the year. This documentation enables you to present concrete, value-driven examples of your work during performance reviews or negotiations, focusing on individual merit and contributions rather than comparisons to colleagues.

Mel Robbins highlights that keeping a brag book prevents you from forgetting your accomplishments and overcomes the assumption that supervisors track every detail of your work.

When negotiating, Tu stresses the importance of presenting your case clearly and then waiting for a response—without downplaying your request or undermining your position. The conversation should center ...

Saving For Security Vs. Investing For Wealth

Saving and investing serve distinctly different roles in achieving financial freedom. Vivian Tu explains that while individuals work hard for their money through labor—whether mental or physical—there are limits to how much one can earn this way. Human effort is constrained by the need for rest and basic necessities, making labor an inefficient money-making machine compared to capital. Money, on the other hand, works continuously, 24/7, with no need for breaks or sleep. This gives investing a crucial advantage for wealth generation. By first earning money, then saving to create a security buffer, and finally investing in vehicles that generate returns, individuals allow their money to work perpetually for them, building wealth far beyond what labor alone can provide.

Starting Your Investment Journey: Choosing a Brokerage, Opening an Account, and Buying Diverse Investments

To start investing, the first step is to choose a brokerage. There are various account types suited to different investment goals and timelines. For example, retirement accounts like Roth IRAs or traditional IRAs offer tax benefits but may impose restrictions. Alternatively, individual brokerage accounts have fewer tax advantages but allow more flexibility and are suitable for non-retirement investing goals.

Once an account type is selected and opened, funding the account is necessary. Tu emphasizes that many people mistakenly believe the process is complete once cash is deposited into the investment account; however, merely transferring money leaves it idle, not invested. To deploy the funds, investors must use the cash to purchase investments. Mel Robbins likens this to shopping: just as money must be spent at the store to fill your fridge, deposits must be actively used to purchase assets.

A strong recommendation is to buy diversified investments, such as index funds, which provide exposure to a wide range of companies. This diversity minimizes the risk inherent in picking individual stocks and helps ensure steady, long-term growth regardless of whether one stock underperforms.

Robo-Advisors: An Entry Point for Those Intimidated by Investment Complexity

For those intimidated by the complexity of investment choices, robo-advisors offer an accessible point of entry. Opening an account with a robo-advisor typically takes about 45 minutes, during which the platform asks questions about income, assets, debt, risk tolerance, and retirement plans. The robo-advisor then constructs a suitable investment portfolio without requiring any prior investment knowledge.

There is a small fee for robo-advisor services, but Tu insists that this is preferable to never investing due to intimidation or procrastination. Starting now and paying a small fee outweighs the long-term loss from delaying. She also advises embracing a buy-and-hold approach: “The day you plant the seed is not the day you eat the fruit.” Long-term investment growth relies on time ...

Financial decision-making in today’s world requires careful evaluation of traditional advice and a willingness to embrace evolving norms. Experts Mel Robbins and Vivian Tu offer practical insights on navigating home ownership, choosing a partner, building generational wealth by living with family, and responsibly planning for retirement—especially for aging parents.

Home Ownership: A Lifestyle Choice, Not an Inevitable Milestone

Home ownership is often viewed as a rite of passage and the key to building generational wealth in the U.S., but Mel Robbins emphasizes that it should instead be considered a personal, lifestyle-driven decision. She urges individuals to ask themselves: “Why do I want a home right now?” and to honestly assess if they plan to stay in one place for a significant amount of time, can afford ongoing maintenance, and are willing to take on the responsibilities that come with homeownership. Robbins notes that chasing homeownership only because it’s what one’s parents or friends did can lead to stress and a mismatch with one’s current life priorities.

Homeownership makes sense when seeking long-term stability, having control over one’s property, and understanding the future benefit of not paying rent in retirement. Yet, in many major cities, Vivian Tu points out, renting is actually cheaper per month than buying, which directly challenges the conventional wisdom favoring home purchase. Tu highlights the stress induced by either being priced out or rushing to buy for fear of missing out—both scenarios that may not align with a person’s career, family, or long-term goals.

Creative Alternatives For Home Ownership When Traditional Down Payments or Purchases Are Unfeasible

For those certain they want to own property but face barriers to buying a primary residence, Vivian Tu suggests creative approaches. She shares the example of someone unable to afford a home in Los Angeles but who purchased an investment property in Oklahoma, where prices are more manageable. By renting in an expensive city and owning in an affordable area, buyers can begin to build equity and participate in wealth creation without overextending themselves.

Tu also demystifies mortgage options beyond the standard 20% down payment, noting that alternatives like FHA, Conventional 97, USDA, and VA loans can lower entry barriers and provide better terms based on location, credit score, or veteran status. She encourages prospective buyers to tailor their loan strategies to match their unique financial circumstances and goals, rather than simply following generic advice.

Selecting a Partner Based On Financial Values and Effort Instead of Trying to Change Them

Vivian Tu asserts that financial compatibility is just as important as emotional compatibility in a relationship, since money is one of the top two sources of conflict among couples. She stresses having honest, early conversations about financial values—using non-judgmental questions (like asking what the ideal vacation looks like or how one would spend a windfall) to glean insight into a partner’s views on spending, saving, and lifestyle choices.

As relationships progress to cohabitation or marriage, Tu advises being transparent about finances and agreeing on how expenses and roles will be divided, sharing personal numbers to foster openness. She emphasizes that roles—whether one partner earns more and the other manages the home, or both work and share household duties—must be clearly defined and mutually agreed upon, rather than assumed or driven by traditional gender norms.

Tu and Robbins both caution against entering a relationship with the intention to change a partner’s ambition or financial approach. Instead, one should seek alignment in values, goals, and work-life balance. Tu warns against expecting qualities or achievements from a partner that one doesn’t possess oneself, advocating for reciprocity in both financial effort and contribution.

Living With Parents As an Adult: A Generational Wealth Strategy, Not Failure

Living at home as a young adult is increasingly common and financially strategic. Mel Robbins cites Federal Reserve data that nearly half of Americans under 30 live with their parents, fram ...

Acknowledging Economic Challenges While Maintaining Personal Responsibility

Rising Costs and Stagnant Wages Threaten Financial Security

Vivian Tu notes that over the past century, the cost of housing, higher education, and overall living expenses have all risen exponentially, while wages have not kept pace. She highlights the reality that people today are being asked to achieve more with fewer resources, making financial stability increasingly difficult.

Economic Forces Favor Wealthy, Hinder Resource-Limited

Tu recognizes that macroeconomic forces—such as politics, legislation, and geopolitical conflict—shape economic outcomes in ways that systemically benefit the wealthy and penalize those with less. She asserts that the structure of the economy treats lack of money almost like a crime, and these external circumstances cannot be changed overnight by individual action.

Internal Locus of Control: Belief Personal Choices Influence Outcomes Despite Systemic Challenges

Despite these challenges, Tu emphasizes the need for an internal locus of control. She distinguishes between people who believe events happen to them (external locus) and those who believe events happen because of them (internal locus). Those with an internal locus of control feel incentivized to make every smart and positive decision to improve their financial circumstances. Both Tu and Mel Robbins stress that being an active participant—taking charge of decisions and actions—is indispensable. Robbins observes that taking control of one’s money brings not just financial benefits but personal power and freedom as well.

Acknowledging That Financial Shame, Blame, and Mistakes Are Counterproductive and Recoverable

The Belief That Financial Difficulty Equals Moral Failure Causes Shame and Avoidance, Hindering Action and Improvement

Tu explains that many people internalize the belief that financial struggles are a moral failing, leading to shame, avoidance, and a reluctance to face financial realities directly. She describes money as a tool that should not define a person’s worth or be a source of shame. Not having much money does not make someone bad, and having a lot does not make someone good.

Few Financial Mistakes Are Irreversible; Consistent Good Decisions Can Restore Stability Just as Bad Decisions Accumulate Problems

Both Tu and Robbins share personal stories of financial errors and recovery. Tu recounts her own episodes of overspending, living frugally as the daughter of immigrant parents, and making significant financial mistakes even after landing a prestigious Wall Street job. She emphasizes that there are very few financial mistakes that are truly irreversible. One can always end up better than they started if they make changes. Robbins describes recovering from $800,000 in debt through persistent side jobs and aggressive saving, showing that ...