A craving to mimic the success of social media influencers could have long term impacts on the financial health of “instaconscious” young Australians.
With the rise of social media, some users are putting themselves in financial stress trying to emulate their heroes through splashing cash on high-end purchases including designer brands, luxury cars and cosmetic surgery and treatments.
We all like to reward ourselves at times but it is important we ask: “Can I really afford it and what is the true cost of buying that designer handbag or sneakers?”
The fundamental rule of managing your money is: if you don’t have it, don’t spend it. Getting into debt, having to go to the Bank of Mum & Dad, or spending money that could be better used fixing your car or saving for a home deposit might provide an instant feel-good moment but can put you way behind financially if it becomes a common practice.
For those struggling with keeping up with the social media celebrities it is important to remember that the influencers are most likely sponsored and are being given the high-end products they are showing off on `insta’.
This is not a judgement of how people spend their money, it is a reminder to think beyond the here and now and make sure there is room for your longer-term financial aspirations.
We all like nice things and there is instant gratification from these types of purchases, but we should also prioritise the needs of our future self and decide if we want to eventually own our home debt free, or we’re happy continuing to rent, put extra towards our retirement or take steps to protect our income and our current lifestyle. It might not be as glamorous, but they are longer term lifestyle decisions.
This article first appeared in the Spring 2021 issue of HLB Mann Judd’s Client Alert.
Disclaimer: The information in this article is general and does not take into account your particular circumstances. We recommend specific tax or legal advice be sought before any action is taken and refer to the relevant Product Disclosure Statement before investing in any product. Jess Lewis and HLB Wealth are an Authorised Representative of Paragem Pty Ltd ABN 16 108 571 875, AFSL 297276.