Alongside tucking into a variety of games and sending important work-related emails, the vast majority of society accesses a range of social media platforms through a modern-day smartphone device. In fact, social media is an integral tool in today’s world, particularly as people access a plethora of information through sites like Twitter, formerly known as X, and Facebook.
For some, the up-to-date news stories and opinions being shared on X make it their go-to social media application. However, others prefer options like TikTok and Instagram as they give users the ability to follow a much-loved influencer who shares content that is purported to be invaluable. In some cases, though, the online personalities that users follow on a daily basis aren’t sharing worthwhile information or providing the right type of education on a particular topic. It can be a bit of a minefield.
In 2024, people are even seeking financial advice on some of the biggest social media platforms around. Known as “finfluencers”, these financially astute online personalities offer a wide range of content on all things money, from how to save cash effectively, to how to purchase your first-ever property. There is also a plethora of advice on how to earn from cryptocurrency, and even content around investing and trading.
Regardless of who you follow on social media, you should always be skeptical when it comes to accepting trading and investing advice, in particular. Learn the basics first. You can find free resources online to learn about everything from forex trading to picking stocks.
It’s essentially worth having a fundamental understanding of what you are trading or investing in, rather than simply accepting the word of an online financial influencer. That said, many of these accounts do provide useful information, but it’s always worth conducting your own research alongside it.
People have always been open to financial advice
While finfluencers are modern-day financial voices millions of people rely on, society has always been open to accepting help on various aspects of their financial life, be it tips on how to make money from a financial advisor or advice from loved ones on whether or not a potentially expensive purchase makes sense.
With that in mind, it’s entirely understandable that people would also look at the online sphere to gain additional support. Social media users who follow an array of finfluencers can scroll through a timeline with ease and gain immediate insight into a range of money-related topics, be it budgeting advice or investment tips.
This content is typically presented in a video format and is easy to digest from a personality that claims to know exactly what they’re talking about. As we’ve already touched on, though, not all of these unregulated personalities are worth following.
Not all finfluencers are reputable
In the same way, people soak up dangerous pieces of advice from health and fitness influencers or follow an apparently tasty cooking recipe that turns out to be vile, there is always a chance that obtaining financial advice from a social media platform isn’t necessarily accurate.
For example, TikTok now houses an extensive selection of finfluencers, some of whom share posts around tax and debt, investment opportunities, and a wide range of other financial advice. Some accounts are worth endorsing, but not all of them are.
In TikTok’s case, the platform has gained a reputation for hosting videos that promote volatile cryptocurrency investment. Additionally, the Financial Conduct Authority (FCA) warned social media sites that it may take action if they continue to promote risky or fraudulent investments.
Sadly, there has been a rise in the number of unscrupulous finfluencers out there, with many also establishing large followings on video-based platforms like YouTube. These personalities have still managed to build huge communities of followers despite not having any skills or experience in the areas they’re claiming to be experts in.
Alarmingly, though, the bite-sized chunks of content they upload are easy to access and, therefore, appeal to millions given the stresses people typically endure around their finances. These same followers are then relying on snippets of material from an individual with no real expertise on the subject they’re speaking on, particularly as anyone can set up a social media account and claim to be a finfluencer offering must-see content.
Some accounts are worth following: but always do your own research
Luckily, not every finfluencer is uploading dangerous or inaccurate content. From Finance Josh and Benzinga, to Humphrey Yang and Anthony O’Neal, there are respected individuals who cover a diverse range of financial categories that are populating the online climate with fascinating views and extremely important information.
These influential voices are also pulling in big amounts of money due to the important posts they share. For example, the aforementioned Humphrey Yang reportedly makes around £1,956 per sponsored post on Instagram.
Likewise, Jeremy Schneider, who has 4.1M followers on the platform, earns around £1920 per post. Even on TikTok, a platform that has faced plenty of scrutiny, the likes of Erika Kullberg earn over £6000 per upload. Mark Tilbury is similar, with around £5000 coming in from a single post.
Whether you’re hoping to gain an edge in the financial markets, manage your money better, or you’re looking to retire early, there are plenty of expert voices who are battling against the wave of inaccurate information from fake experts. They upload snippets of content that people around the world can genuinely gain a lot from. It can be tough to spot the good finfluencers from the bad, though.
What to look out for
For starters, look into who exactly a particular finfluencer is. Also, always approach this area with a degree of skepticism, particularly as popularity doesn’t mean they’re a trusted voice or a thought leader.
Likewise, just because a video has thousands of views, it doesn’t automatically mean that the content is worth listening to. Always assess the individual in question, read the comments, ensure that it isn’t a scam, and conduct your own thorough research.
