Wayne Blazejczyk finance industry expert and field hockey athlete and coach, talks about how the Australian Securities and Investments Commissions warns about taking advice from “Fik Tok.” A 24-year-old Sydney woman who has over 15,000 followers from her posts and videos, seems to have all the right advice from things like cheap date ideas, to buying the right house, saving your first $100,000, and even investing in Dogecoin. She has worked as a financial manager and has accumulated close to $350,00 of assets in 5 years. She has become one of the finfluencers, social media content creators building an audience through dispensing financial advice.
Wayne Blazejczyk finance industry expert says becoming a finfluencer seems to be the lucrative trend these days, however the ASIC warns from taking advice from “Fik Tok.” First off, placing yourself as a financial advisor without a license can lead up to $135,000 and 5 years in prison. However, to become a finfluencer it requires no expertise at all. This is where it gets tricky. So, who then are you really following? An expert of someone who claims they are an expert, and you follow them, take the advice because they have tons of followers. Not smart.
Here are a few tips to assess the credibility of an influencer and their advice. First, do not assume that just because someone has a lot of followers that they should be followed. Do your homework. Research who this person is, what experience they have, check out their educational background do not just take it for granted that they are who they say they are and should be automatically qualified for their advice. Make sure there is evidence to back up their claims.
Also, if they are really making money and credited, then why would they give away all their secrets that made them rich for free? That makes no sense. You would think they might give you a taste of their tips in financial success but then charge you for the rest. If they have some strategy that beats the market, why are they on social media bragging about it? Anyone advertising a stock or product or financial strategy on social media should be questioned.
Last thing, just like the pyramid schemes, the “get rich quick” schemes you should be wary of them. It can be possible to make large ROIs, however taking advice from someone on social media is probably not telling you all the truth, unless they are trying to get you to try your chances as a finfluencer.