fastcompany60d ago
Why does uncertainty make us less rational with money? And who should we trust for financial advice online? Vivian Tu, financial educator and CEO of Your Rich BFF, breaks down today’s personal finance risks and opportunities, from “lifestyle inflation” and the most common money mistakes smart people make to how Gen Z is navigating 2026 volatility and a shifting job market.This is an abridged transcript of an interview from Rapid Response, hosted by the former editor-in-chief of Fast Company Bob Safian. From the team behind the Masters of Scale podcast, Rapid Response features candid conversations with today’s top business leaders navigating real-time challenges. Subscribe to Rapid Response wherever you get your podcasts to ensure you never miss an episode.Today there’s so much uncertainty—in prices, jobs, politics. Do you see that shaping how people behave with their money? Are they less rational in financial decision-making?It’s like, well, if you don’t think you’re going to be able to afford a home or you don’t think you’re going to be able to go on that actual vacation you want, it becomes like the Estée Lauder lipstick index of, “Oh, well, I can’t afford a new TV, so I’m going to go to the drugstore and get myself a little lipstick.” Or, “I’m in a dollar dribble for a little coffee, I’m going to do this.” You’re spending on things that you will not ultimately derive true happiness out of, true pleasure, true joy, just to get a dopamine hit. When you are in a position of uncertainty, it is more important than ever to have a plan, because if you just leave it up to hope, it’s not going to get you there.Lots of folks are using AI tools these days for financial decisions, budgeting, investing, even taxes. But a lot of surveys say that for a lot of these folks, it’s led them to some bad decisions sometimes. Where do you think AI can genuinely help with money? Where should we be more wary?Well, I want to be very clear that none of the AI LLMs, like the ChatGPTs of the world, none of them are financially licensed. Not to be so self-serving, but that is in part why I built out my venture called Ask Dolly. Askdolly.com, check it out. We are actually an SEC-registered RIA, and if you ask Ask Dolly too complex of a question that is not knowledge-based, but rather personal-based, we transfer you to one of our CFPs.I just want to say RIA is “registered investment advisor.” CFP is “certified financial planner,” right?Oh, sorry, guys. Yeah. We saw that AI is the next iteration of financial exploration and it really does help people on their financial journeys. They get to ask the embarrassing questions that they’re too ashamed to ask. But I don’t think that AI can operate independently of a little bit of human touch, and frankly, someone who is licensed to provide you financial advice, because it is so personal and there are so many factors to take into account.There are a lot of people online, creators like yourself who offer financial advice. Not all of them are licensed.Reputable.Or registered. How do you know if something you come across on a social platform or online, that it’s reputable, that it’s worthwhile? We get this with health advice, we get with money advice.What I say is, even with my content, if you see something and you’re like, “I wonder if this is true,” you need to be doing your own research. Watch my video and then go online and check, “Can I find three reputable sources that back up what she’s saying?” You’ll always be able to because I actually research my topics. But go look at articles from The Wall Street Journal, from the Financial Times, from Barron’s, from law firms or banks. Compare them. We have unfettered access now, so there is no excuse for falling for a trap. You actually have to do your own research.And you have to understand how the people who you’re engaging with, how they make their money, right?Exactly. Exactly.Are there things you’ve learned as a creator yourself that you think people don’t really understand about how creators make money?Yeah, 100%. You wonder why all of those lifestyle influencers were pushing Stanley Cups and all of the little charms that then go on the Stanley Cup and then all of the—they make an affiliate commission on the backend. She doesn’t love her Stanley Cup, she wants you to buy one so she gets money. I always am very, very honest. When I do brand partnerships, I’m like, “These keep my content free. This is why you don’t have to pay a subscription fee for this. This is why I can do all of this editorial work unpaid: Because I make money.” But at the end of the day, whether or not you get the high-yield savings account I recommend, you should just 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 have tasted Dunkin’ Donuts coffee. It’s good, but it’s not the only coffee out there.I’d love to ask you a few rapid fire questions if I can, get your advice on things.Let’s do it.All right. So what’s the biggest money mistake that smart people make?I think it’s just lifestyle inflation, especially for people who start to make more money. You make a little bit more money, you spend a little bit more money, you make a little bit more money, you spend a little bit more money, and at the end of the year you’re like, “How come I don’t have any additional money saved?” All of us fall victim to the comparison trap where we compare our lives with everybody we see on social media, and suddenly you think that if you don’t have X, Y, and Z, you have a bad life. You don’t need to be spending on stuff just to impress other people.All right. Next question. If I could focus on just one thing financially this year, what should it be?Trying to increase your income, because my mentor told me this one line and it’s stuck in my brain forever, she said, “You can only save as much as you earn, but you can always earn more money.” We talk so much like, “Cut out the avocado toast, don’t buy the latte, don’t get the little treat.” Imagine how many little joys in your life you would have to cut out to save $5,000. Now imagine how easy it is to ask for a $5,000 raise. Frankly, people get much larger raises than that. It is so much easier for you to make more money than to try and cut every little thing out.Home ownership. Rent or buy in 2026? How do we decide?This is an insane question because real estate is so geographically focused. I cannot sit here and be like, “You should rent or buy.” I don’t know where you live. And in some cases, the answer is different based on where you live. What I do know is that it is currently cheaper to rent than buy in 70% of all major metros. And frankly, we should all be looking at our own lifestyles and asking ourselves a couple questions. One, do we plan on being here for longer than five to seven years at a minimum? If not, you’re not buying. Are you in a position in your career to potentially have the opportunity to make massive leaps and bounds for a little bit of flexibility? So is there a chance you might be transferred to the Tokyo office? You being able to be flexible might be the reason why you get that position versus somebody else, and having that flex might help you. So renters win.But there is something to be said about building equity. Ask yourself this question. Do you want to build that equity in your primary residence or would it be smarter to maybe just buy an investment property somewhere that is a little cheaper and then continuing to rent your primary residence? If you are planning on building out a family and you really want to paint the walls and you want to have the nursery and you want to do all of these things, maybe renting is not the right move. Maybe you want to buy. Again, we go back to that five to seven years at a minimum, because the fixed costs of buying a home are very expensive. You have mortgage origination fees and you’ve got to pay some broker fees. You’ve got to pay fee-fi-fo-fum. If you’re going to pay all that, you’ve got to be staying there for at least a little bit.
