With the widespread use of social media, one job that got most into the limelight is an influencer's job. Everyone is in a race to become an influencer in fitness, fashion or finance. But the financial influencers or finfluencers can be a real threat to you and your hard-earned money.
Let's dive deep into a discussion about these finfluencers,
Is the knowledge of these finfluencers real?
Surprisingly there are many such financial influencers who don't hold any kind of degree or have not taken any formal education about the topic of finance. The actual financial advisors who open these advisory firms to help you in managing your money in different ways, from tax filing to investment recommendations, mostly hold some financial degrees.
But there is also another side to the story, and some influencers have real financial degrees and knowledge, which gives them enough credibility as financial educators or advisors. Some have previous work experience as a financial employee or managing an advisory agency and now have shifted online just to expand their business. This proves that there are financial content creators who can be trusted or be taken advice from.
But keeping aside the debate about degrees and formal education, it is also true that even if you don't have financial degrees, you can become a financial influencer with self-education or learn from different online teachers or top university courses. But you can't be sure whether they really have the proper knowledge or not.
Side effects of taking advice from influencers -
When you take advice from a financial influencer, then you may get some benefits like making some suitable investments where you can get high returns on your money and also you may know some more banking and tax saving tricks but there are also side effects of this. The side effects include -
1. Oversimplification -
One of the biggest problems with the advice of financial influencers is that they oversimplify a complex financial topic, and that just eliminates the probability of risks from your mind. Underestimating the risks of different investments can lead to you investing a big amount in that investment option which leads to your money getting lost.
2. Lack of accountability -
Another problem with taking advice from any social media creator about your finances which includes your hard-earned money is that if something goes wrong, you will not be able to hold anyone else responsible except you and your luck as they are not any certified advisors so you will not be able to keep them responsible for anything.
3. Paid promotion -
Sometimes these creators are paid to make a video which results in them making a positive video for the company showing only the good side and eliminating the risks and dangers of investing. But if anything goes wrong, you only have to pay for it.
4. Influence on decision-making -
Sometimes the influencers show some luxury cars or houses they own, and you get convinced by that and start following them blindly. That can lead to you investing in things that do not support your financial goal.