Personal financial management is not often taught in schools, though it is an essential part of growing up. Being able to budget the money you make and save it for purchases, investing, or retirement is a vital life skill.
Learning some management tips can be helpful. If you know how to track monthly expenses and figure out your spending history, learn to spend money wisely, make smart investments, build your savings, and utilize social media outlets to help manage your finances, you’ll be just fine.
Here are six ways in which using social media can help you manage your finances.
1. Use social media to track economic trends
Financial advisors are using social media to do their business. About 40% of investors use social media as a key investment information source.
Combining traditional and social media communication can help with tracking stakeholders and influencers. Investors gain insight into the market and get help with what they should or should not invest in.
2. Follow company status reports
Social media such as Facebook, LinkedIn, and Twitter can help with personal finance if you read status updates from prominent companies. By engaging in these sources of information, investors become more active in their own financial decisions and get more information about potential moves.
3. Locate financial mentors
Social media can be used to communicate and get expert advice from potential mentors. Many financial groups have accounts on social media sites to connect with potential clients and maintain existing relationships.
4. Track breaking financial news
You can use Twitter and hashtags to follow financial news for professionals and consumers. Keywords such as 401k, advisors, debt, financialadvice, financialnews, impactinvesting, investing, moneymanagement, or personalfinance can all be valuable when searching on this social site for insights into the market.
5. Do online research through social media sites
Social media adds to the research process. Younger generations may not trust a financial advisor; they’ll check online and do research before making a commitment.
However, if one of these research sites is a social media site, it can help advisors as well as clients. Finding out from a social media site that a financial advisor is credible can help in the process. One may also seek advice from friends and family on whom to trust and which companies to invest in, and even follow companies to see which ones are thriving.
6. Join professional networks
Specific personal finance social networks can help you manage your money. Most are communities for consumers, advisors, and small business owners to share financial guidance and discuss personal finance.
By utilizing social media in these various ways, consumers can make smart decisions that will steer them toward practical investments, put them in the mindset of successful investors, and increase their knowledge of finance.