I must admit to not being fans of the ‘influencer era’. Letting people I have never met influence my everyday decisions doesn’t appeal to me in the slightest. If a mistake is to be made with my finances, I want it to be me that makes it!
It happens enough anyway, with advertising, marketing and promotions everywhere.
I think voluntarily letting some random on social media tell us what to buy is a step too far.
Unfortunately, it seems the attitude is not universally held.
Millions of people follow influencers and let them guide purchasing decisions.
Some of those influencers will take good care of our money and do their utmost to deliver reliable reviews we can depend on.
Not all do though.
At best, you waste a little money on some pointless fad item you’ll soon send to recycling or give to a charity shop.
At worst, you invest thousands in a crypto investment or reverse mortgage that fails spectacularly.
The latest in a long line of celebrity fails is Kim Kardashian who is in trouble with the American SEC for promoting crypto on her socials without telling anyone she was paid to promote it.
“For investors, the Kardashian case is an example of a celebrity touting a crypto product to her large, loyal audience without making it completely clear how she was getting paid to make the endorsement”, the SEC said.
That crypto failed in a big way and real people lost real money. Kim didn’t though, which is why it’s so important to be careful who you trust.
These aren’t the only examples of celebrities promoting products like crypto or NFTs.
Few of them end well.
Who to trust with financial matters
You can probably trust Kim to recommend lipstick or shoes, but we’re not sure you should trust her with your money.
She is obviously very talented at managing her own, but we’re not sure she should be telling others how to manage theirs.
So, who can you trust?
IFAs, Independent Financial Advisers, mortgage brokers and any qualified, certified financial broker.
If you want celebrity advice, Martin Lewis is the only person to listen to.
Treat everyone else with a punch of salt and/or healthy dose of skepticism.
Social media and paid promotion
Social media is a minefield. Technically, there are rules around disclosing promotions where you get paid or are given the product for promotion.
But as we all know, not everyone abides by those rules. Kim allegedly didn’t and others probably don’t either.
Social media is an inescapable part of our lives but shouldn’t be the entirety of our lives.
Just like you shouldn’t get your news from Facebook, you should take financial advice from social media.
Social media is a great time waster but it isn’t real life. You don’t see the real picture, the real motivations or the real story.
Please don’t be influenced in every area of your life by something that isn’t real!
