Social media and the correlation to your personal finances.
When social media was on the rise, no one could have expected the effects it would have on peoples mental, physical and financial well-being. What started out as a place to connect with friends and family, quickly turned into something much larger. It created a world where businesses could have a more direct line to target audiences, simplified online shopping, gave us influencers, etc.
Depending on how the user utilizes it, social media can have many pros and cons in many aspects of the user’s life. Below are some of the pros and cons that are more likely to influence personal finances.
Pros:
Job opportunities – With social media sites such as LinkedIn, it’s now possible to connect with recruiters, hiring managers, and more just from having an updated profile where you are able to showcase your experience and skills. Recruiters can do a search based on credentials and if you’re a good fit, there is likelihood you will appear in their searches and they are able to easily reach out to have a conversation. There is also a job search page where you can easily apply for available positions with the click of the button. This opens the door for you to grow in your career and take advantage of opportunities that could better suit your lifestyle.
Target marketing – For those who are self employed and looking to grow their business, most social media sites provide tools to help you. One of the ones that can have the biggest influence on your success is target marketing. You are able to target the market you would like to reach, whether it be by age, gender, location, or as specific as education, marital status, etc. By targeting the specific market you are looking to reach, you have greater probability of gaining a following, or interest in your services/products.
Promoting your side gig – There are many individuals out there who have a side gig to earn some extra income. This might include everything from photography services, selling for MLM companies (Scentsy, Epicure, etc.), selling homemade personalized crafts, and more. For little to no cost, you’re able to promote your business by posting on a regular basis, showing off your work, and hopefully people recommending your services or products.
Financial information – Many businesses in the finance industry have taken advantage of social media to relay their information. There are many business pages that can be a wealth of information when it comes to budgeting, dealing with debt, building credit, etc. By taking advantage of this free information, you can put together a plan that works for you to further yourself financially.
Cons:
Lower productivity – social media has many great benefits, but it’s incredibly easy to get lost in the day-to-day posts from friends and family, as well as some of the entertainment features social media now presents, like short video clips. To avoid wasting your day scrolling through, set aside a specific time each day to take a social media break where you can have a peak at those videos, or catch up with friends and family. By setting aside that time to take a break, you’re more likely to keep on track with the rest of your day and keep your productivity levels high.
Target Marketing – Target marketing is a great thing for those who are looking to grow their business, but for those who like to spend their time scrolling through, you are subjected to ads that you fit the demographics for. We see thousands of ads a day, which for some leads to temptation and impulse purchases. This can easily throw off a monthly budget, possibly adding to credit card debt, or preventing you from working towards your savings goals.
Influencers – Influencers make a living by showing off their lavish lifestyles. The more lavish the lifestyle, the higher the following. When you follow influencers, you become their target market and they’re able to encourage followers to purchase the products they don’t necessarily need or can afford. It also creates the need to “keep up with the Joneses” by creating the want for the lavish lifestyle these influencers portray. To avoid these temptations and possibly deterring from your financial goals, unfollow the influencers who negatively affect your mindset and encourage unnecessary spending.
To avoid the negative effects of social media all together, there are a few options that could be considered:
- Take a break or delete social media until you have a good budget and spending habits in place. By being in a confident spot financially, you’re less likely to give into the temptations you may face.
- Removing saved payment information from devices. By having easy access to your credit card information, it makes it all too easy to make a purchase without thinking it through. When effort is required to retrieve credit cards or debit cards, it gives you a moment to really think if this purchase is really worth it.
- Spend your time on your device productively. If you spend your time day dreaming and searching the things you would like to purchase, the algorithms will continue to show you those items and similar items in your social media feeds. If you spend your time researching the things that are important to you, they will start to appear in your feed and help keep you focused.
If social media has had a negative effect on your spending habits, and you’re looking to improve your situation, there are options.
If you are looking for advice, or a second opinion about your debt, it does not cost anything to talk about your options. Every financial situation is unique and viable options can differ from person to person. A conversation free of judgment and cost, is the first step to determine options for debt that make sense for you. For a free consultation, please call or text (506) 645-1814 or email jaime@tackledebt.ca; or visit www.tackledebt.ca.