Financial advice is information, strategies, or recommendations given to people regarding their financial decisions. It is generally provided by a financial advisor, accountant, or other financial professionals and is tailored to meet the needs of the individual receiving it.
As the saying goes, not all financial advice is good, and with the rise of social media, some terrible financial advice is going viral on TikTok. Let’s take a look at what this looks like and how to spot bad advice:
Terrible financial advice is going viral on tiktok
Financial advice comes in many forms and from many sources. It can refer to what services a financial professional can provide, such as helping you create a budget or setting up a retirement plan. Financial advice also includes more general tips and tricks, such as checking your credit score and monitoring your investments.
The types of financial advice available can range from sound financial planning and investing guidance to downright terrible recommendations that are best avoided. With the rise of social media platforms such as TikTok, users have begun sharing their own knowledge on money matters, often without verification or credentials. It is important to remember not all financial advice found online is good advice!
When it comes to following somebody else’s financial tips, be sure to research the source first. Is it someone with experience in finance and investing? Do they have actual credentials? Have they been verified by any previous publications or conferences? What other resources (if any) do they refer too? Asking yourself these types of questions can help you decide if the source is trustworthy and worth trusting with your hard-earned money!
Here are some common types of financial advice:
- Budgeting recommendations: Ideas for cutting costs or increasing income by creating a budget that helps keep track of spending habits.
- Debt repayment strategies: Tips for paying down debt at affordable rates while managing finances responsibly.
- Tax planning suggestions: Advice on how to file taxes more efficiently and lower overall tax burden.
- Investment options: Suggestions for where to invest money based on individual goals and risk tolerance level, such as stocks, bonds, real estate investment trusts (REITs), mutual funds, 401K plans etc.
- Retirement planning tactics: Strategies for saving up enough money for retirement at different stages throughout life before retiring later on in life financially secure.
The Financial Advice Going Viral On TikTok
Recently, there has been a surge of poor or even harmful financial advice going viral on the popular social media platform, TikTok. This advice has been shared by influencers who may or may not know what they are talking about, but regardless the effect of the advice can be damaging to those who follow it.
In this article, we will explore the common themes of advice that is often shared on the platform and discuss why it can be so dangerous.
The Dangers of Following Poor Financial Advice
The popularity of social media platforms such as TikTok has exploded in recent years, resulting in a wealth of content that has been shared and consumed by millions. While the platform has opened up new avenues for entertainment and creativity, it can also be used to share inaccurate and potentially dangerous financial advice. It’s important to keep in mind that the majority of TikTok creators are not licensed financial advisors or certified experts on money management. These creators may have their own valid suggestions; however, independent research is still required to determine whether or not a particular approach will be beneficial for an individual’s finances.
TikTok users should remain mindful when following any money advice as there could be risks involved if no professional guidance is sought out prior to enacting any changes. It’s generally advised to seek advice from a certified financial advisor who can provide tailored advice based on an individual’s personal situation and goals. In some cases, this advice may involve simple tactics such as budgeting or increasing savings rate but could also involve more sophisticated investment strategies such as portfolio diversification or asset allocation – this all depends upon the particular needs of each individual as well as their risk profile.
It’s important to remember that sound financial advice requires a thorough understanding of an individual’s goals, income level, and expenses which most fans won’t have access to through TikTok videos alone. Therefore it is advisable to do one’s own research before making any significant commitments with regards to finances. Ultimately taking time away from popular trends and leveraging more reliable sources such as established websites (eg Bankrate) can ultimately save individuals serious amounts of money in the long run.
Examples of Poor Financial Advice On TikTok
With the rise of social platforms, many people are finding advice from friends, family and even influencers. Unfortunately, some of the financial advice on TikTok is terrible and potentially harmful. From investing tips from people with limited knowledge to recommending bad financial products, it’s difficult to know what to believe.
In this article, we’ll discuss some examples of terrible financial advice that’s going viral on TikTok:
Investing in Cryptocurrency
TikTok is a popular platform with numerous financial-related influencers that provide advice on investment topics such as stocks, cryptocurrency, and real estate. Unfortunately, the vast majority of these influencers are providing unreliable and dangerous advice for their followers. Investing can be a great way to grow wealth over time, particularly when done prudently.
However, one of the most dangerous examples of poor financial advice going viral on TikTok has to do with investing in cryptocurrency. Cryptocurrency is still relatively new and volatile compared to traditional investments like stocks or real estate. This makes investing in cryptocurrency highly risky and potentially enough to put your entire savings at risk. Furthermore, investing no more than you can afford to lose should also be taken into account when considering any type of investment decision including ones involving cryptocurrency trading.
Past performance does not guarantee future results so it’s important to take this into consideration before attempting to invest in cryptocurrency or any other type of assets that could experience losses due to market fluctuations over time. Before getting involved in any type of crypto trading it’s recommended that an individual research the topic extensively and speak with a trusted financial advisor or tax professional if needed.
Gambling
Gambling can often be a game of chance and luck, so it is vital to understand the risks before getting involved. Investing even a small amount of money in this activity can quickly spiral out of control owing to its varying nature. Unfortunately, some TikTok creators are encouraging their followers to take up gambling as a way to make quick money. This is extremely poor advice and risks people incurring large losses due to irresponsible behavior with their finances.
Gambling advice given on TikTok should be met with extreme caution and skepticism as it could lead to disastrous outcomes if followed without full knowledge of the potential ramifications. Furthermore, caution should also be taken if someone is using multiple accounts or techniques for gambling in order for them to maximize gains at the expense of others. It can seem appealing to use risky strategies during gambling activities, but ultimately it could lead individuals towards bigger financial losses that could have been avoided altogether by having holistic knowledge on gambling activities beforehand.
Not Saving Money
Savings are a critical aspect of financial success and any advice that minimizes or ignores this fact should be ignored. Unfortunately, there is a trend of discouraging people from saving money on TikTok. Some videos advocate for spending all your money on things that bring you joy, with the implication being that saving for the future is negative or unimportant. This is terrible advice, especially during times in which uncertain economic conditions can rapidly change our financial situations.
Building an emergency fund should be prioritized before any other financial decision; most experts recommend a savings goal of three to six months’ worth of living expenses saved for those times when the unexpected happens. Additionally, long-term goals should always be planned for such as retirement and large purchases like houses and cars.
Without a plan for your financial future in place it will be difficult to achieve your goals without significant amounts of stress or worry— not exactly something you want while simultaneously trying to enjoy life today. Prioritizing both long-term savings goals and creating an emergency fund can help safeguard both peace of mind now, as well as future wellbeing.
