ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Analyst. Market Analyst is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
Market Analyst Logo
Market Analyst Logo
MARKETANALYST.US / PERSONAL FINANCE

Online Creator Proposes 70-20-10 Debt Hack for Faster Payoff: Effective or Not?

The creator shared a hack that is based on both a philosophical principle and a money rule.
PUBLISHED MAY 10, 2024
Cover image source: TikTok | @taylor_money_
Cover image source: TikTok | @taylor_money_

Millions of TikTok users consume personal finance content, with the #personalfinance racking up 79.2 million views on the platform. Financial gurus, content creators, entrepreneurs, and even users share advice on various aspects of finance, and debt has been a hot topic. Recently, Taylor Money (@taylor_money_), a rising star on the platform, struck a chord with the audience through a video outlining a strategy to pay off debt quickly. While the advice was taken from a book he read, it seems to be backed by finance experts.

Representative Image | Unsplash | Photo by Mathieu Stern
Representative Image | Unsplash | Photo by Mathieu Stern

In the video, which now has over 314,000 views, the creator outlines a hack taken from a popular book. Taylor claims in the video that his hack helped him pay off over $150,000 while he was making only $2,000. He recommends people spend their energy towards finding ways to grow their money instead of worrying about debt. As focusing on debt may end up growing it.

Screenshots from the video | TikTok | @taylor_money_
Screenshots from the video | TikTok | @taylor_money_

Taylor then reveals the book is called “The Richest Man in Babylon”, which shares the hack that can allow people to pay off debt fast. Citing the book Taylor recommends people to put aside at least 10% of income towards investments before paying a dime on debt.

Then 10%-20% should be allocated towards paying debt and no more than that, Taylor says. He then urges people to keep doing it on autopilot so that they don’t focus too much on their debt and continue paying it off a chunk at a time.

Screenshots from the video | TikTok | @taylor_money_
Screenshots from the video | TikTok | @taylor_money_

The video has resonated with many viewers struggling with debt, as evidenced by the comments section. While some people claimed that the hack worked for them, others had questions about how to start. “Please tell me which as a beginner to investing, one to start with 💻 1-3 would be great,” wrote a user, (@chrsta__)

Screenshot from the comments | TikTok | @chrsta__
Screenshot from the comments | TikTok | @chrsta__

Meanwhile, several others shared that Taylor’s hack works and they have tried and tested it. “I did this and paid off 150k”, one user (@corymichelle) wrote. While another user (@candidlylaura) supported the method saying, "Yes!! And it’s so easy now that it can happen without you doing anything. Automation!

Screenshot from the comments | TikTok | @candidlylaura
Screenshot from the comments | TikTok | @candidlylaura

What Taylor explained is close to the 70-20-10 rule that recommends rationing income for different purposes. As per the rule, 70% of the after-tax income should go towards living expenses, 20% should go towards savings or investing and the remaining 10% should go towards paying off debt. However, the method would be slow to pay off debt and not particulary fast.



As per a U.S. News report, living expenses include mortgage or rent, utilities, transportation, insurance, food, clothing, entertainment, and more. Furthermore, high-interest debt payments like credit card debt and personal loans, should also be included in this.

Thus, Taylor’s hack can indeed be beneficial for paying off low-interest debt over some time. This is crucial as getting out of debt will reduce financial stress and help free up income that could go towards achieving bigger goals.


@taylor_money_

Hack for debt pay off fast 💰

♬ original sound - Taylor Money

For more such personal finance advice and tips, follow Taylor Money (@taylor_money_) on TikTok.

POPULAR ON MARKET REALIST
MORE ON MARKET REALIST