Love them or hate them. Social media influencers are everywhere. With an estimated 127 million (*click on any link text to read the source of our information) influencers worldwide, with content from home renovations to DIY hacks, there’s no shortage of online advice – but what about when it comes to your money?
Believe it or not, finance influencers (also known as finfluencers) are becoming increasingly popular. In fact, one in five people admit they have made investments based on recommendations they’ve found online, with a further 69% of consumers saying they trust influencer recommendations.
At face value, it might seem harmless to follow financial guidance found on the internet. But just because advice is popular doesn’t mean it’s reliable. We’ve teamed up with My Money Expert to explain why social media money tips might not be as good as they seem – and how to protect yourself from financial pitfalls.
Unregulated advice
Did you know that 13.7% of people use social media as a resource for financial guidance?
It’s easy to be swept up in professional-looking videos, but 74% of those who followed financial guidance from social media lost money or experienced an undesired outcome.
Hardly any financial guidance online is regulated, meaning that any decision made based on this has little protection. If you want to file a complaint because of an undesired outcome, the regulator is unlikely to compensate you because it wasn’t advice.
That’s why working with a regulated financial adviser like My Money Expert is crucial. Unlike influencers, they’re held to strict standards to protect your money. A good way to think about it is by applying it to the world of trade. It’s a bit like hiring a tradesperson with no qualifications. If they botch a job, you’re left footing the bill – no guarantees, no protections, just an expensive mistake. But when you use a qualified professional, you know they’ve trained for years, follow industry regulations, and are held to high standards.
Not personal to you
Directed to an audience of millions, money tips seen on Facebook or TikTok are given on a general basis. Assuming your circumstances, the influencer might assume your finances, goals, and lifestyle without knowing anything about you.
A financial adviser, on the other hand, will chat about your current income and outgoings, as well as your future goals. You not only receive tailored information but also protection for your money. If you’re in an unlikely situation where you’ve received poor advice, the firm/adviser must reinstate you to your original position. In fact, research found that those who took financial advice ended up nearly £48,000 better off over 10 years than those who didn’t!
While financial education is essential, it’s equally important that information on social media is approached with caution and that you seek advice when in doubt.
If you want to make the most of your money, why not speak to a regulated expert?
Get in touch with My Money Expert today for personalised, reliable guidance you can trust.
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My Money Expert has been helping the UK to unlock its financial potential since 2010. Rated 5 Stars on Trustpilot, we offer regulated independent financial advice on a variety of areas including investments, ISAs, pension consolidation and retirement planning. We’re proud to be a B Corporation and are committed to doing right by our clients, as well as the wider community.