Social media has become a staple part of our daily lives. As a result, it has the power to influence us in many unexpected ways, including the ability to affect our financial position.
Positive Impact of Social Media on Finances
Below is a collection of examples as to how social media affects your finances and spending habits positively:
Social media platforms show you ads based on your spending habits, product preferences, and browsing history. So, if you’re someone who often googles discount codes or eagerly looks for the cheapest version of an online product, you can expect your social media feeds to soon be flooded by products advertising some great discounts and deals.
Buying sale items can help you save money and have a short-term positive impact on your finances. However, developing a habit of purchasing unnecessary things just because they’re on sale can hurt your financial standing, so be sure to take a moment to think before you buy! Be smart on your finances.
Many casual social media influencers like to accept sponsorship proposals or participate in affiliate programs to earn an extra side buck. However, you’ll also find many full-time influencers who make all their money solely through social media sponsorships. This proves that social media is capable of helping people earn a living and improve their financial status!
Negative Impact of Social Media on Finances
Here’s how social media affects your finances negatively:
Special Marketing Tactics
Social media platforms, including Instagram and Facebook, track your web browsing sessions, texts, and significant online interactions to better understand what kind of products you’re likely to be interested in buying.
They then show you ads tailored to your tastes. Hence, making it more likely that you’ll buy the product (and spend your hard-earned money on it!)
To prevent these online platforms from tracking you and showing your custom ads, try changing your browser’s cookie settings or rejecting cookie requests from any websites you may visit.
Social media advertisements are designed to make it easy for consumers to purchase the product that’s being advertised. This ease of purchase encourages people to spend money on things that they may not actually need.
Impulsive purchases like these can burn a hole in your pocket. Be sure to think twice before you press that tempting “add to cart” button!
Social Media Trends and Hype
Remember fidget spinners? Sunset lamps, too? Or those eye-catching mood octopus plushies that everyone on your Instagram feed owns?
Did seeing those products continuously reappear on your feed make you feel like you should buy one of them, too? If yes, then you’ve officially had a first-hand experience of how social media trends and the hype behind them can influence your spending.
Trending products like the ones noted above do little to add real value to your life. Try to check how to save on big purchases rather than impulsive buying. However, they do a brilliant job at taking value away from your wallet, which is why it’s important to think twice before jumping onto the social media product trends bandwagon!