Social media has a major influence on our lives, it is a source for communication, connection, and even how we make financial decisions when purchasing products. The rise of influencers on these platforms promoting products and posting their lavish lifestyle can have a significant impact on our own financial decisions. It is important as we scroll through social media that we recognize advertising tactics, and the influence social media plays in our financial choices. In this blog post, we will explore the ways in which social media can impact our financial decisions and discuss strategies to maintain financial wellness to keep on track for our financial goals.
- Product Recommendation
Influencers play a major role in today’s marketing. Influencers post relatable content that builds trust between the content creator and their followers. Companies will utilize this built trust between the influencer and their viewers as a marketing tactic. Viewers will click purchase without adequate research or establishing the difference of wants versus a need. It is important for viewers and followers to take into consideration that influencers are paid to promote these products and it is important to do adequate research and determine if the product they are advertising is necessary to even purchase.
- Luxurious Lifestyle
Influencers often highlight a glamorous lifestyle, promoting consumerism and materialism. Platforms like Instagram and Facebook showcase glimpses into the lives of others, material possessions, luxurious vacations, and seemingly perfect lifestyles. The desire to live a luxurious life can lead individuals to make unwise financial decisions. It is important for viewers to keep that perspective in mind and remember that influencer feeds are comprised of curated content.
- Fear of Missing Out
Influencers, whether intentional or not, create a fear of missing out through social media. This fear can drive impulsive spending, leading individuals away from their carefully crafted financial plans. As viewers witness influencers enjoying new products, experiences, or trends we may feel compelled to join in to avoid the perceived loss or exclusion. Combating FOMO requires a conscious effort to focus on personal goals and values. Establishing a strong financial plan based on individual priorities helps to shield against the emotional sway of social media-induced FOMO.
In conclusion, while social media provides valuable opportunities for connection and information, its influence on our financial decisions demands careful consideration. It’s critical to remain focused on your personal goals and values, while understanding that you don’t need to live a lavish life outside of your financial means in order to be happy.