A savvy financial guru who's a whizz at money management has revealed her top five no-nos when it comes to handling cash. Michela Alloca, from the US, is author of the book 'Own Your Career' and a regular on social media where she dishes out financial wisdom and budgeting hacks. She's also crafted tools for those keen to improve their money skills, including a personal finance starter kit and an investment guide.

The finance whiz posted a video on TikTok titled "five things I don't do with my money as a financially successful person" and teased her followers with the caption "If you want to be financially successful in 2025...I'll see you on ig and yt." Michela cautions that "what you don't do with your money is just as important as what you do with it.". Here are the five things she steers clear of:. Michela insists she never forgets to return items and is "super super ruthless" about what she decides to keep. She elaborates: "So for example, if I order clothes online and I'm trying them on and I'm not like absolutely over the moon cannot wait to wear these out of the house, they're getting returned and I don't care if I have to go figure out where to print a label.

"I don't care if I have to walk or drive to a UPS or FedEx store. I don't care if it costs me a five dollar restock fee I am returning those things.". Michela swears by a rule that if you keep items you never use, dislike, or won't use in the future, it's equivalent to "basically flushing money down the toilet." She observed that many people are "lazy" and has challenged everyone to make 2025 the year they become "accountable" for returning unwelcome items.

Michela avoids traditional bank savings accounts, opting instead for a high yield savings account. She argues that standard savings accounts linked to your checking account are a "complete waste of space", citing the little interest they accrue compared to what you could be earning with a high yield account. She noted that traditional savings only offer up a measly 0.1% in interest whis is "virtually nothing on the cash that you have on that account" - whereas, with a high yield, she claims you can earn at least a decent 3.5%. She pointed out that, as long as the bank and the account are insured, this is a savvy move, and in the UK, the safety net comes in the form of protection from the Financial Services Compensation Scheme (FSCS).

Doubling down on her strategy, Michela reveals she applies her high yield savings account to all her short-term cash saving goals, like saving up for a holiday, and she doesn't even bother with a traditional one. Michela shared a "controversial" money habit of hers: she doesn't use a debit card, opting instead to put everything on her credit cards. With a "big fat disclaimer," the finance coach stressed that she uses these credit cards responsibly, never accruing debt or charging more than she can pay off immediately.

If you're not practising responsible credit card udr, or if you're struggling with debt, Michela suggests giving this method a miss. She prefers credit cards because they extend the value of her spending through rewards like cash back or travel points, applicable to future purchases or travel plans already in the pipeline. Also, credit cards offer another perk: "Plus with a credit card you have purchase protection so you can like fight against fraud if you ever have any issues.".

On another note, Michela clarifies her stance on sales: "Number four is I don't shop sales and this doesn't mean that I don't buy things that are on sale because every time I say this people always say 'that's dumb'. You're not listening to what I'm saying. "I don't shop just because something is on sale so if a store I like sends me an email and says they're having a sale on jeans I'm not buying a pair of jeans just because I saw that email.".

She further clarified that she would only purchase an item on sale if it was something she already needed, not simply because a sale was brought to her attention. She also pointed out that "if you buy something that's on sale that you don't need you're not saving any money, you're just spending it.". Another crucial aspect of Michela's financial strategy is never forgetting to track her expenses. This is the one monetary habit she is the "most religious about" as it gives her a sense of security.

She confessed that during weeks when she doesn't keep tabs on her spending, she experiences "so much more financial anxiety" due to uncertainty about where her money is going, often leading her to believe she has spent more than she actually has. For those grappling with financial anxiety, guilt over spending, or feeling overwhelmed by their finances, Michela recommends tracking expenses as the "very first thing.".

The financially savvy woman confidently asserted: "I pinky pinky promise guarantee you it's going to make you feel better." Her TikTok video sharing these insights has garnered an incredible 1.6 million views, 128,000 likes and nearly 900 comments. Michela's financial advice video sparked a flurry of questions and comments from intrigued users. Some asked for specific guidance, with requests like "would you please do a video on tracking expenses? " and inquiries about her top picks for reward-earning credit cards: "what are your favourite credit cards for rewards/cashback? " Others chimed in with their own experiences and reactions to points Michela raised.