How To Use This TikTok Trend To Get a Handle on Your Finances
Written by
Dawn Allcot
Edited by
Angela Corry
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Four-in-10 Americans want to save more money in 2025, according to a recent Financial Resolutions survey from Fidelity. Meanwhile, 38% want to pay down debt and 30% simply want to “spend less.” But many people may have already abandoned those resolutions.
Quitter’s Day, the second Friday of January, marks the point where nearly one-quarter of people have already quit their New Year’s resolutions. If you’re still going, you might end up in the 20% who quit sometime in the final weeks of the month.
Finance expert Karoline Bliemegger of Klarna, the AI-powered global payments network and shopping assistant, recently shared how a TikTok trend called “scary hour” can help you stick to your financial resolutions.
Scary hour, introduced by San Francisco-based copywriter and TikToker Laur Wheeler, according to Maddyness.com, involves setting a timer for one hour to tackle the day’s toughest task. When the hour is up, you move on.
Setting time limits to stay focused isn’t new. The Pomodoro Method is another productivity tool that entails blocking time to get things done. Time-blocking can be especially effective for dreaded endeavors — like setting a budget to take control of your finances.
Face Your Fears or Eat a Frog?
Business author Brian Tracy shared a similar hack to beat procrastination in his bestselling book, “Eat That Frog,” in 2001. In the book, Tracy advocated for completing your most dreaded task first thing in the morning. Once you’ve eaten a live frog, even a proverbial one, the day has to improve from there!
“Scary hour” puts a unique — and somewhat less icky — twist on it by acknowledging the fear and anxiety that come with dreaded tasks.
Bliemegger said, “Scary Hour is all about dedicating one ‘yikes’ hour a day to tackle tasks you’ve been avoiding.”
But if you’re looking to get your finances in order, exactly what steps should you take? Bliemegger broke it down for GOBankingRates’ readers. She recommended using an hour each day for five days to create a plan you can live with for the rest of the year.
Step One: Perform a Finance Autopsy
Last year is dead and gone but you can still learn from it. Bliemegger suggested going back and tracking your last three to six months of spending.
“Start by categorizing your expenses into 3 big groups, then divide them into sub-categories,” she said.
You will want to track:
- Fixed expenses, such as housing, insurance and subscriptions
- Variable expenses, including groceries, transportation, and utilities
- Discretionary, such as dining out, shopping, entertainment, and gifts
Noting that your “look-back” is likely to include the winter holidays, Bliemegger said, “if December spending skews the data, create a separate category for ‘holiday expenses’ rather than folding it into discretionary spending.”
Step Two: Create a Budget
Bliemegger recommended writing a realistic budget that works for you. In the U.S., this might mean 40% for housing, 30% on other essentials (fixed and non-fixed expenses), 20% for treats and 10% for savings.
However, if you don’t have an emergency savings set up, you may want to allocate more for savings and less for treats. And if you haven’t started investing for retirement, consider participating in your company’s 401K — even if it means trimming down some of your non-fixed essential expenses.
Bliemegger said you can use the Klarna Money Manager tool to set a monthly spending limit for your budget.
“Klarna’s Money Manager… helps you set limits on your ‘treat yourself’ budget to ensure you’re staying on track,” she said.
Step 3: Spot Spending Patterns
With your spending data in front of you, look for ways you can save money, reduce expenses, or even break money habits that are keeping you from your goals.
“Spending patterns are trends in how you regularly allocate your money over time,” Bliemegger explained. “Patterns often reveal where your money goes and why, helping you identify opportunities for improvement.”
Day 4: Set Savings Goals
Bliemegger recommended setting savings goals for financial stability and also allocating funds to a short-term goal that’s fun.
“Setting up exciting savings goals — like a dream trip — is a great way to stay motivated, but it’s equally important to prepare for the unexpected,” Bliemegger said. “Whether it’s for a dream vacation or life’s unexpected turns, having a solid financial foundation can provide both peace of mind and the freedom to pursue what excites you most.”
A common goal is to work toward putting three to six months of living expenses in a high-yield savings account.
“If that feels overwhelming,” Bliemegger said, “aim for $1,000 as an initial goal. Then build up from there.”
Day 5: Automate Your Savings
When you “pay yourself first,” as the old financial adage goes, savings becomes automatic. Most banks have a feature that allow you to transfer funds automatically into savings at set intervals.
“Automating helps reduce the temptation to spend, as the money is set aside before you even see it in your checking account,” Bliemegger said.
In addition to saving at least 10% of your pay, use cashback apps like Klarna and put those windfalls directly into a high-yield savings account. Bliemegger explained how it works: “Shoppers can earn up to 10% cashback on purchases when shopping in the Klarna App. There’s no confusing points system–just real cash added to your Klarna balance, which you can use towards jumpstarting your emergency fund or future goals!”
Following these five steps toward financial freedom can help you stay on track with your New Year’s resolutions related to money.
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