The Pitfalls of Taking Financial Advice from Online Influencers
The typical social media user spends almost two and a half hours every day scrolling through their apps. For some people, it’s an all-consuming, unhealthy pastime that can influence their decision-making.
This is fine in some scenarios, like taking aesthetic pointers on what colour to paint your front door from a home reno influencer or learning how to do expert contouring by a semi-professional MUA.
But in other situations — those with higher, more long-term risks — taking advice from an uncredited source on TikTok or Instagram might be a big mistake.
When it comes to personal finances, it’s understandable (and smart!) to want to have at least a basic grasp of the fundamentals of money management. That’s so you can create a comfortable and available cash flow that makes it simple to access your financial needs — ‘must-haves’ including mortgage payments, utility payments, car insurance, and beyond.
In time, once you’ve got basic budgeting down, you’ll no doubt want to exceed and surpass simply meeting your everyday needs to the point of investing your money and making it work for you.
Scrolling through your socials at night, you might have been enticed and allured by the promise of quick money and sure bets when it comes to investing. However, when it comes to making money and establishing financial buoyancy, blindly taking financial advice from an influencer is a major mistake. Read on to find out why.
There’s No Way to Verify the Source
In some cases, finance pros are self-professed. As it stands, there’s no verification process on social platforms whereby those offering advice prove their qualifications or experience; this means that any Tom, Dick or Harry could be guiding you on how to apply for online loans, how and where to invest, and how to get the best mortgage rate — scary stuff!
Advice Is Offered on a Generic Basis
Not all the advice given by a finance influencer will apply to you and your unique financial situation. A video that reaches upwards of thousands or millions of users simply cannot apply to each and every viewer.
Influencers May Have a Vested Interest
Generally speaking, influencers influence to make money. It might be hard to know if they’re pushing a product or investment opportunity out of sincerity, a genuine want to help their viewers’ financial health, or because it’s in their best interests.
They’re Likely to Share the Positives Only
It’s fair to say that for many, scrolling through their socials and watching online videos is a way to shut-off from the outside world. For this reason, influencers might only showcase the positives in finance, without sharing a full, well-rounded picture, as a way to entice subscribers.
The Takeaway
It’s not beyond the realms of possibility to find a genuine finance specialist on your social feeds who has your best interests at heart and simply wants to do good by sharing their lived experiences and expert knowledge.
Just be sure to take a deeper dive into the source history if an influencer has piqued your interest, and research both the individual, and the topic itself, yourself before you make any financial moves.
