‘I’m personal finance guru – there’s 5 things I won’t do with my cash’

A financially successful woman and author of the book Own Your Career, who regularly shares financial advice and budgeting tips on her social media platforms, has revealed five things she never does with her money.

Michela Alloca, the American finance guru who has also developed resources such as a personal finance starter kit and investing guide for those looking to enhance their financial skills, shared a video on TikTok titled “five things I don’t do with my money as a financially successful person”. In the caption, she wrote, “If you want to be financially successful in 2025…I’ll see you on ig and yt.”

Michela emphasised that “what you don’t do with your money is just as important as what you do with it.”

Don’t forget to return things

One of the key things she doesn’t do is forget to return items. She is “super super ruthless” about the things she keeps, explaining: “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.”

She added, “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 has issued a stark warning for those hoarding unwanted items, stating that keeping things you don’t like or won’t use is akin to “basically flushing money down the toilet.”

She also accused many shoppers of being “lazy” and called on people to make 2025 the year they hold themselves “accountable” to returning things they don’t like.

Don’t use a traditional savings account

In a bold move away from conventional wisdom, Michela advises against using traditional savings accounts.

Instead, she champions the benefits of a high yield savings account, explaining that traditional ones linked to checking accounts are a “complete waste of space” due to the minuscule interest they offer. She points out that while a traditional savings account might offer a minimal 0.1% in interest, a high yield account can deliver at least 3.5%, provided it’s insured.

In the UK, the Financial Services Compensation Scheme (FSCS) safeguards all savings accounts and cash ISAs with banks, building societies, and credit unions. Michela uses her high yield savings for all her short-term financial goals, including her emergency fund, holiday savings, and a house down payment, eschewing a traditional savings account altogether.

Additionally, she suggests avoiding the use of debit cards. She revealed that she doesn’t use a debit card and instead puts all her expenses on credit cards.

However, she was quick to issue a “big fat disclaimer”, emphasising that she uses her credit cards responsibly, never accumulating any debt and only charging what she can pay off in full at the time of purchase. She advised those with credit card debt or who struggle with responsible usage to disregard this tip.

Michela explained that her preference for credit cards is due to their ability to stretch her spending further through rewards like cash back or travel points, which she can apply to future purchases or travel plans. She also highlighted the added benefit of purchase protection against fraud.

Don’t shop sales

Michela stated: “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 elaborated that while she will make a puchase if she actually needs the item and it’s discounted, impulsive buying prompted by a sale notification is off the table for her. She also stressed her philosophy with the words: “If you buy something that’s on sale that you don’t need you’re not saving any money, you’re just spending it.”

Don’t forget to track your expenses

Tracking expenses is crucial. One of Michela’s key financial disciplines is not losing sight of her expenditures.

She considers this practice absolutely vital to her peace of mind, declaring it’s the financial habit she is the “most religious about” and confessing it makes her feel “so much better.” On weeks when she hasn’t stayed on top of her expense tracking, Michela experienced “so much more financial anxiety” fearing that her spending has spiraled out of control without actual evidence.

For those wrestling with financial stress or guilt from unplanned purchases, she recommends expense monitoring as the “very first thing” to do.

According to Michela, adhering to this method is bound to help, asserting confidently: “I pinky pinky promise guarantee you it’s going to make you feel better.”

Her wisdom on financial advice spread far and wide, with her TikTok video racking up a staggering 1.6 million views, alongside a swell of social media approval indicated by 128,000 likes and nearly 900 comments engaging with her advice.

Social media users are engaging with Michela’s financial advice, prompting queries such as “would you please do a video on tracking expenses?” and seeking her insight on “what are your favourite credit cards for rewards/cashback?” Viewers also chimed in on the tips shared by Michela.

One user proudly claimed: “I make $80 in my HYS account for literally doing nothing.”Another highlighted consumer habits, remarking: “I can’t believe how many times I hear people say they don’t return things, it’s wild!”

A popular piece of advice shared by another was discussed enthusiastically: “Someone told me ‘if you wouldn’t buy it at full price do not buy it on sale’ and that’s helped me so much.” This particular comment resonated widely, amassing over 4,000 likes which reflects broader consent among other TikTok users.