Is Social Media Stunting Your Financial Progress?

Social media has been blamed for all kinds of societal ills lately, from undermining self esteem, to promoting fake news, and even to rewiring the pathways in your brain.

So here’s a new problem that’s been chalked up to too much time on social media.

It seems that millennials, in particular, may be seeing their efforts to “get ahead” sabotaged by the need to “keep up.”

Almost 90% of millennials say social media causes them to obsess with what other people have and spend.

Over 60% admit to feeling “inadequate” after spending time on social media, and confess that FOMO (Fear Of Missing Out), prompted by social media, leads them to impulsive and unplanned spending.

The result? Half of all millennials say they spend more on going out each month than they do on rent or mortgage, according to a new Allianz study. While social spending makes for a fun lifestyle, it can leave millennials behind the curve when it comes to building financial security for the future.

The Takeaway:

Make a budget and stick to it. Tracking your spending makes it easier to stay on course and not overindulge.

Limit your “going out” time so social activities don’t become a budgetary black hole. And make sure to pay off your credit card bills every month. If you can’t, it’s time to rethink your lifestyle.

Pay yourself first, meaning save every month through automatic payroll, 401k, or bank deductions. Once you’ve met your monthly savings quota, you’re free to have fun.

Everyone else’s life looks better than yours? Sigh. That’s a tough one to handle when you’re young. Getting older, and learning that the grass is rarely greener, might make you more content to live your own life and stop caring about everyone else’s.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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