We have so much information at our fingertips. That can be a great thing…or it can lead us astray, especially when it comes to our finances. That is why it is so important to make sure that the information you get comes from trusted sources.
Social media and our financial habits.
Social media has truly changed the way we interact with each other and the world, including the way we perceive, manage and grow our money, as well as the things we spend our money on. With easy access to information, online purchasing platforms, influencers, and now AI, our attention can be pulled in many directions. For people just starting on their wealth-building journey, this can present incredible opportunities and significant pitfalls.
I’ve spent my career educating people around the world about wealth building and I know how quickly our financial outlook can change based on a few decisions. When they are informed and work in your favor, it’s wonderful! But when we get bad financial advice, it can be financially devastating. That’s why it’s so important to be cautious with the information you find online (and offline too).
To protect yourself be sure that:
- The source is a verified financial expert with a repeatable process. It’s up to you to do the research to make sure the financial advice you are getting is sound.
- Check their credentials.
- See if they disclose how they make their money.
- Get feedback from other people who have successfully worked with them to achieve the financial goals you want to achieve.
- Try to find articles, interviews and multiple success stories showing that their financial process and the information they are sharing is reliable and repeatable.
- The investment is on the up and up. There are many financial scams out there, so if it seems too good to be true it probably is. Additionally, if they are using high pressure or fear tactics to try to get you to buy in, that’s another red flag. Before you invest, ask yourself:
- Does the strategy make sense to you? If you can’t understand it, do not invest in it.
- Is there a specific plan for success and/or a robust business plan?
- What is the long-term outlook?
- How are they mitigating risks?
- Are they willing to patiently answer all your questions?
- It’s not just another short-lived trend. People are always talking about the next big thing on social media…and there is always something else that quickly takes its place. When it comes to building wealth, it’s important to define your financial strategy first, then do the things that align with it. Yes, there are some hot stock or investment tips that are good, but there are many more that are a flash in the pan, and in a snap of your fingers your money is gone up in smoke. You are much better off to steadily build your wealth through consistent monthly investments and a sound financial plan.
- It works for you. Personal finance is personal! It needs to address all the aspects of your current financial situation, your risk tolerance, what you want to achieve and how you want to achieve it. If a financial tip or investment doesn’t feel right, then it isn’t, no matter what anyone says or how they might try to convince you. There are many ways to build wealth, and you must find the ones that work for you.
Social media can be a great starting point for learning, but it should not be your only source of financial advice. Social media algorithms tend to flood your feed with things that confirm your existing beliefs rather than help you find broader or newer perspectives.
Take the time to explore outside of your networks and cross reference the information you get, to see if you can find it on multiple sources. The greater the consistency in the information you find, the more likely it is to be sound information you can use to build your wealth.
If you don’t want to dedicate the considerable time it takes to become an investment expert, engage a financial advisor or a master financial mentor. They can help you develop your personal strategy and an investment plan do develop a portfolio that works for you.
Where can you go to develop your financial literacy skills?
If you prefer to expand your financial literacy skills using online resources, there are many great apps and user-friendly platforms that can help you. Vanguard, SoFi, Charles Schwab and Fidelity Investments are just some of the well-known companies that have good ratings on their apps and can help with budgeting, banking, investing and financial planning.
No matter which you choose, just be sure to stick to the basic principles that will build your wealth. To help you, here are the principles that self-made millionaires use but don’t often share:
- Spend less than you make. Budget tracking apps will help you with this. The more you know about your numbers the easier it is to make the numbers work for you, so you can achieve financial freedom.
- Pay yourself first. Every month, take a percentage of your income and invest it before you do anything else. Even if it’s not a lot it will still add up over time and your future self will love you for it! Use automation to make sure you are investing consistently.
- Manage your debt. Not all debt is bad. Good debt will help you make money! (Learn more about it HERE!)
- Learn from experts. This really is the fastest way to build your wealth, which is why self-made millionaires actively seek mentors. They can show you what to do so you can avoid costly mistakes and financial mishaps.
- Have multiple streams of income. The more diversity you have in your portfolio, the better off you will be. You can invest in stocks, bonds, REITs, real estate, small businesses and more! There are many ways to increase your streams of income, and the online platforms and apps you use can help you track it all.
The digital age makes it so much easier to improve our financial literacy, make financial decisions, get investing advice and manage wealth, but with that ease comes the responsibility of making sure that the financial decisions we make support a wealthy future.
To make the best financial decisions, stay informed. Be critical of the information you receive. Ask questions. And stick to the basic financial principles for building wealth, whether you are using the next user-friendly platform or visiting your local bank. Combined, it will help you build the wealthy future you so richly deserve.
If you would like to learn with like-minded people in an online community where you can get financial advice from a master mentor, I invite you to join me for Let’s Talk Money. In the live monthly sessions, we will talk about the economy, what is happening in the financial world, the things that are influencing my decisions and where I see opportunities for investors and business owners.
What you will learn will help you make better financial decisions and improve your financial situation. CLICK HERE TO SAVE YOUR SPOT NOW!
“If you are ever offered the opportunity to work directly with Sharon Lechter or to be a part of her Play Big Movement and Money Mastery course, just jump right in. She is a leader when it comes to teaching financial freedom and what it truly means to become a master of your money instead of a slave to your money. In about three months I was able to apply her mindset and money calls to action from the Play Big and Money Mastery courses and was able to pay down $70,596 of bad debt. I am so proud and feel very privileged to be her mentee.” — Kim Mennella, CEO, Jorani Solutions, Inc.