Social Media vs Financial Success: Is Social Media Getting In The Way Of Your Financial Success?
Is social media getting in the way of your financial success? There is no denying that social media has become an essential part of our lives, whether it is keeping in touch with your loved ones, looking for your next job, or even scouting for your next purchase.
Unfortunately, social media has been the downfall of many people’s financial success. As holiday offers start coming through and almost everyone on your social media circles starts posting luxurious travel pictures and gifts, it is time to consider how social media can affect your spending and financial success.
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Here’s what you watch out for:
Keeping Up With The Joneses
More than ever, it is now easier to keep track of the lifestyle of friends, colleagues, acquaintances, and even strangers you admire online. Anytime you log in to any social media site, you have pictures and videos of people in fancy restaurants, shopping in luxurious malls for the latest fashion trends, buying the latest devices, or wasting an afternoon away on some exotic beach.
If you are a money spender or have a money status script, you will be swept away by all this and want to match what others are doing. But, unfortunately, there is a possibility of spending more than you can afford. That means you are foregoing saving and investing and accumulating debts in a bid to look the part.
Pro-Tip
The best way to stay proactive and avoid keeping up with the Joneses is to understand your money personality, money script, financial situation, and goals. So before splurging on anything you see a friend with, take a deep breath first and look at your financial situation. Is that expense bettering your financial goals? Do you have the money?
You also need to remind yourself that you don’t know the other party’s financial situation. Maybe they can afford it. Maybe not. But no one is willing to announce on social media that they cannot afford the lifestyle they portray.
Targeted Ads
Sometimes I search for something online, and the next minute, I see endless targeted ads from different brands. When you have numerous brands targeting you, it is hard to escape from all the products and services they shove down on you.
Pro-Tip
While you cannot avoid ads on social media platforms, you can reduce the number of targeted ads that come your way. First, you can turn off cookies on the sites you visit. Websites use your browsing history and habits to track your patterns and personality. Then, they use this to send you ads in the future that they feel suit you best.
Alternatively, you can also browse using a private browser. This helps in limiting a website’s capability to track your activities.
Third, you can reduce the amount of time you spend on social media (I am honestly trying to do this as well). If you are not online scrolling for minutes, you can’t see the ads.
And finally, just unfollow these brands. Of course, that’s easier said than done. But, if you want to see less of their content that makes you dish out your card, just unfollow them.
FOMO
Away from trying to keep up with others, there is the Fear Of Missing Out or FOMO. Maybe a group of friends is planning a weekend getaway or a vacation. Or a celebrity influencer has embraced a particular product or brand, and everyone is now rallying behind it. Because you are afraid of missing out, you end up spending money that you did not plan to spend.
Pro-Tip
As much as you want to enjoy life to the fullest and never miss any opportunity, it is best to take a step back and evaluate your financial goals. How is participating in a particular activity enabling your dreams?
Second, you need to realize that you can never have or do everything you want at all times. This has actually helped me. I always follow travel influencers and agents and add all these destinations they post to my bucket list. I’d promised myself that 2021 was the year I traveled more. I see all the beautiful pictures of people hiking Mt. Kenya and Mt Kilimanjaro, and I want to join the next group. But, every time I look at my bank account and financial goals, I have to shelve my travel plans. I would easily have gone to one or two of these, but my financial goals were somewhere. So, I had to keep reminding myself that there would be a next time when I am more financially prepared.
Think Twice Before Spending
It is so much easier now to buy anything online. Before, you had to walk outside and drive or board a vehicle to a shopping mall or market. Now, you can order just about anything online.
Most individuals never take the time to reflect on the purchase when the purchasing process is more instant. All you have to do is provide your card details or pay via Mpesa, and you can wait for your items to be delivered to the comfort of your home.
Pro-Tip
Now that you can order various items online, it makes more sense to think twice before purchasing. Before checking out an item, ask yourself whether you really need it. In fact, give yourself a day or two to think about it; unless it is a necessity like grocery shopping. For everything else, you think about purchasing and you have not budgeted or saved for it, take a step back and think twice before checking out.
Be Wary Of Investments And Money Making Schemes Flaunted Online
Just because so and so made some quick cash on some scheme doesn’t mean it is legit. Unfortunately, most of the quick-money avenues you see people flaunting online are nothing but scams.
Pro-Tip
Do not invest your money in any asset you do not understand. Instead, take the time to understand what investment strategies they use to make such returns, who the company’s management is, and its history. And always remember that any investment with high returns must have high risks.
While we rely on social media for one thing or the other, it is good to recognize the effects it might have on your finances. I, for one, decided to always take a day or two to think about a purchase when I saw an item on social media. You don’t have to deactivate your social media accounts. But, you need to recognize what fuels your unplanned spending and work towards correcting it.