Nowadays thanks to technology and social media, we are flooded with information. With so many influencers coming up on the screens in our hands, we do at times end up getting “influenced.” Whether the thing we are getting influenced about is right for us or not, we don’t at times care about until it’s too late. This especially goes for your money and finances.
This is especially true when you don’t have much or enough financial knowledge but are eager to try things out. Then, it is easier for us to get swayed when we see an influencer with huge following sharing tips and advices on social media. Well, with impressive bios stating they are certified this or that and with reels with more than 100k views, we don’t blame you to get “influenced” (well, that’s where the word comes from, right?). But, not every information out there or every advice shared might work for you.
Just like your clothes and personality, even in finances – not one size fits all! When it comes to money management, everyone has individual personality, goals, sources, spends, and all. But how do you know where to get your Financial Advice? How to access which advice works for you? How to judge whether the advice you find through influencers would work for you or not? Keeping this and more in mind, we approached Priyanka Bhatia, Financial Coach and Founder of Women On Wealth to help us answer all these questions.
Having worked in educating and empowering women over the years in matters related to money and finances, Priyanka shares her Expert Take with us.
Where to Get Financial Advice:
Here are some people or places where you can get trusted financial advice. You can also keep a mix of 2-3 sources around you to make sure you get the best out of everything –
- Certified Financial Planners (CFPs): A CFP is a professional with the education, experience, and ethical standards to provide sound financial advice. They can help you with a wide range of financial planning needs, from retirement planning to investment strategies.
- Financial Educators and Coaches: Financial educators, like those at Women On Wealth, provide the knowledge and tools needed to understand and manage your finances. Unlike traditional advisors, who may manage your money for you, financial educators empower you to make informed decisions and take control of your financial journey.
- Online Financial Platforms: Many platforms offer financial advice, but it’s essential to choose reputable sources. Look for platforms that provide evidence-based information, are transparent about their credentials, and do not have a conflict of interest in the advice they offer.
- Peer Networks and Communities: Engaging with financial communities, such as Women On Wealth, allows you to learn from the experiences of others. These communities offer a supportive environment where you can ask questions, share insights, and gain confidence in your financial decisions.
How to Assess Financial Advice:
Here are some smart ways to assess the financial advice you are getting –
- Credentials and Expertise: Always check the credentials of those providing financial advice. Look for qualifications such as CFP, CFA, or other recognized certifications. Ensure they have the experience and knowledge relevant to your specific financial needs.
- Transparency and Independence: Be wary of advice that comes with a sales pitch. Independent advisors or educators who are not tied to selling financial products are often more trustworthy. Most educators would focus is on empowering women through education, not selling financial products or services.
- Personalization: Financial advice should be tailored to your individual situation. As mentioned before, one-size-fits-all approach rarely works in personal finance. Look for advisors who take the time to understand your goals, risk tolerance, and financial circumstances.
- Evidence-Based Approach: Reliable financial advice should be grounded in research and proven strategies. Avoid advisors who recommend high-risk investments or strategies without a solid track record. Like, communities, such as Women On Wealth, would teach evidence-based methods that have been successful for thousands of women.
- Ethical Standards: Ensure that your financial advisor adheres to high ethical standards. They should have your best interests at heart and be transparent about any potential conflicts of interest.
The Influence of Finance Influencers:
In today’s digital age, finance influencers on social media have become a popular source of financial advice, particularly among younger audiences. While these influencers can provide valuable tips and insights, it’s crucial to approach their advice with caution. Here’s why:
- Check Credentials: Many finance influencers may lack formal qualifications. Always verify their expertise before following their advice.
- Beware of Bias: Influencers often promote products or services they are paid to endorse. Ensure their recommendations align with your financial goals and needs.
- Short-Term vs. Long-Term: Social media content is often focused on short-term gains or trending topics. Remember that financial planning is a long-term journey. Use social media advice as a supplementary resource, not as your primary guide.
Leveraging Technology for Financial Management:
Technology has made it easier than ever to manage your finances. So, let’s also share some tools to consider and use for various financial needs.
- Budgeting Apps: Tools like Mint, You Need a Budget (YNAB), and PocketGuard help you track expenses, set savings goals, and manage your budget effectively.
- Investment Platforms: Apps like Groww, Zerodha, and ETMoney provide easy access to investment options, allowing you to build and manage your portfolio from your smartphone.
- Financial Education Platforms: Websites like Coursera, Khan Academy, and the Women On Wealth platform offer courses and resources to deepen your financial knowledge.
You can also combine traditional financial advice with insights from verified finance influencers and from certified apps, to gain a control over your finances. Remember, it is not just about receiving financial advice— it’s about understanding and taking control of your financial life.
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