Yes, some people have made money by following these and other investing trends, but building wealth isn’t about joining the latest meme stock craze. It’s about developing healthy financial habits and sticking with them over time. Plus, don’t let your FOMO (fear of missing out) fool you—some social media influencers seem rich, but sometimes appearances can be deceiving.
Lifestyle envy is nothing new, of course, but social media has put it into overdrive. Raia Carey, a certified life coach and spokesperson for Capital One Canada who has partnered with them to share tips on how to achieve greater wellbeing, including financial wellness, says that social media can alter our expectations of reality. As a result, we often think that we’re missing out on things whenever we log off or put our phones down.
The addictive nature of social media, combined with rising financial worries and housing unaffordability, are driving the appeal of easy-to-use online investment platforms, especially among younger people.
Before you follow an influencer’s advice or invest your hard-earned money, think about these fundamentals:
Most influencers only show a curated aspect of their lives: the glamorous, successful parts. Keep that in mind when watching and reading their posts.
Seek out expert advice if you want to learn more about a subject, says Carey. “And, instead of thinking about influencer content as ‘this is bad vs. this is good,’ shift your mindset. Think ‘cool, love that.’ That’s something I’m interested in.’” Then, she says, “Check it over with someone you trust who may be a little bit more informed on those topics than you.”
Do your research
If you’re interested in investing, get information from different sources, such as investment advisors and financial journalists. If you do invest, consider starting with a small amount of money. Remember that while some people made a lot of money buying meme stocks, a lot of people did not.
Have a savings plan
If there’s one financial lesson we’ve learned from the last two years, it’s that having an emergency fund or a savings cushion is important. If possible, put away a small amount each week or each month.