by Kurt Purkiss
In recent times, a new trend has emerged in the digital age—the rise of coaches and finfluencers (financial influencers).
With the increasing popularity of social media platforms, these self-proclaimed experts claim to provide guidance and advice on everything from personal development and life skills to investment strategies and financial success. While some have found value in their content, experts are now raising red flags about the hidden risks associated with this growing phenomenon.
A Deceptive Façade
Under the guise of expertise, many coaches and finfluencers attract followers by showcasing luxurious lifestyles, flashy cars, and grandiose success stories. They promise quick fixes, easy money, and instant success, making it enticing for vulnerable individuals seeking ways to improve their lives.
However, experts caution that such displays may be misleading. These influencers often cherry-pick their achievements, creating a façade that does not reflect the realities of the journey to success. The risks are evident when followers attempt to replicate these so-called “proven strategies” without a clear understanding of the underlying principles and potential pitfalls.
Lack of Regulation and Qualifications
One of the major concerns surrounding coaches and finfluencers is the lack of industry regulation and oversight. Unlike certified financial advisors or professionals in various fields, these individuals are not subject to stringent qualifications, standards, or codes of conduct. As a result, there’s a higher likelihood of unscrupulous characters exploiting their influence for personal gain, promoting risky financial decisions, or even engaging in fraudulent activities.
The content disseminated by coaches and finfluencers often feeds unrealistic expectations. This can lead followers to make impulsive decisions or take significant risks without fully understanding the potential consequences. Aspiring entrepreneurs and investors may pour their savings into ventures they aren’t adequately prepared for, leading to financial ruin.
Influence on Mental Health
Another risk associated with this trend lies in its potential impact on mental health. Constantly comparing one’s life to the extravagant displays of success on social media can lead to feelings of inadequacy and anxiety. For those who follow such influencers, it can be challenging to distinguish between genuine motivation and the pressure to conform to an unattainable standard.
Educating and Empowering the Public
To mitigate the risks, experts emphasise the importance of education and critical thinking. Individuals should be encouraged to verify the credibility of coaches and finfluencers, seek advice from qualified professionals, and be cautious of get-rich-quick schemes. Promoting financial literacy and digital media literacy will empower the public to make informed decisions, thereby safeguarding themselves from potential harm.
While coaches and finfluencers have gained popularity and influenced many positively, there are inherent risks involved. As the trend continues to grow, it is vital for individuals to approach such content with a discerning eye and remember that genuine success often requires hard work, patience, and a solid foundation of knowledge rather than relying solely on the advice of digital influencers.
I would encourage anyone to contact our office below or by calling 02 4969 6600 if you are considering any investment or similar scheme that you have found online to ensure it aligns with your goals, and to seek advice from qualified professionals to ensure it is a sound strategy.
Disclaimer: The content of this article is for informational purposes only and should not be construed as financial or professional advice. Readers are encouraged to consult qualified professionals before making any financial decisions.