The new social media app is a hot spot for personal finance conversations

If you haven’t had a chance to check out the Clubhouse yet, it may be because you were never invited. Yes, this new social media app and network is by invitation only, so it’s a little more exclusive than Instagram or Snapchat. The club also consists of voice rather than text-based chat rooms, which means you can appear and “listen” to what people are saying instead of having their thoughts read in the written word.

Likes tik tok And the other major social networks, Clubhouse is filled with all kinds of people, from snoopers to influencers who want to be influencers to real professionals trying to build their brands. And like other social media platforms, Clubhouse features its share of money experts and “influencers” who use the platform to explain their financial philosophy or share tips for getting rich quick.

The Clubhouse money talks are definitely reaching new audiences, but is it good or bad? To a large extent, it depends on who is listening, who is listening, and what is taking away from him.

The problem of social media and money

All social media platforms have the same problem when it comes to the financial tips they host, and that’s true whether we’re talking about YouTube, TikTok, or Twitter. Anyone can announce their experience and suggest any financial strategy they want. They don’t really have to back up any claims they make, and people often misrepresent themselves in order to build influence.

Club enthusiast Michael Freebe says he’s seen and tried “holy” financial advice firsthand. As the Clubhouse veers towards an older demographic, there are buzzwords that appeal to people.

When the younger generation is overwhelmed by influencers with peeling teeth whitening services, Freeby says older Clubhouse users are more likely to fall prey to snake oil sellers with a clickbait moniker telling them they’re going to be millionaires fast.

Either way, there is a good chance that the “influencer” in the club is a liar or at least dispels the truth.

“I’ve been in so many rooms that I’ve seen several Clubhouse users make these claims saying they’re millionaires giving advice in one room and debating how heavy their troubles are in the next,” Freeby says.

Financial advisor Julian B. Morris Wealth Management Concierge He says it all boils down to the fact that the Clubhouse and other networks are used by very few planners and licensed financial professionals. This becomes a problem because the influencer’s job is to influence rather than provide real, actionable advice that people can use and benefit from.

Not only that, but Morris notes that the Clubhouse influencer has no fiduciary responsibility to room participants.

“There is no reason to trust advice given in a chat room or that a TikTok video is your best influence,” he says. “I have yet to see a trusted influencer, someone whose job description means the client’s interest comes before their personal financial gain.”

When do you take money tips from the club

While Clubhouse comes with the same risks as other social media platforms, financial planner and senior manager Brian Walsh SoFi He says these unconventional platforms have opened the door for millions of people to learn about topics essential to their understanding. Furthermore, there are rooms for beginners, specific interests, and certain affinity groups.

Walsh says that as a result, a beginner could Use this as a safe way to learn the basics of personal finance without all the jargon used in the industry. Meanwhile, investors can use this as a way to learn about different strategies others are considering before doing their own research.

With this said, Walsh says it’s important to research qualifications and experience, which should come in handy if the person sharing financial information in the Clubhouse is established in their career.

“While you don’t have to fire someone without credentials right away, the lack of them suggests that you need to do more research and make sure the individual is trustworthy and a good fit for your financial needs,” he says.

For example, if you come across a clubhouse financial expert like Bobbi Rebell, Jason Vitug, or Dr.

Once you’ve taken the time to research the person you’re listening to, you should also make sure the advice matches your life, Walsh says. He adds that many of the topics that drive engagement are not appropriate for most people. For example, new and Exciting investment strategies like NFTs It sounds great, but most people should make sure they know the financial basics before spending the time learning more about alternative investments.

“If you’re early in your financial journey, skip the focus on investing and find a focus on the basics of financial education,” Walsh says.

For example, Jason Vitug hosts a weekly room called “What The Finance (WTF)” where he and others discuss financial literacy topics. Bobbi Rebell also hosts a weekly room called “Money Tips For Grownups” that covers a wide range of financial education topics.

last thoughts

Remember that general financial advice is rarely ideal for your individual situation, says Ariel Kimbarovsky M1 financing. And personalized advice isn’t something you’re likely to get from a Clubhouse, TikTok, or any other social media platform.

At the very least, you should listen to Clubhouse influencers who are credible and honest about the fact that their advice may not apply to you.

“The best investment strategy is one that is allotted to you, your money, your life goals, your risk tolerance and even your values, and the best people who can follow the advice from the Clubhouse, in my opinion, are the ones who are open about the concept,” she says.

“Look for experts who acknowledge that their success may be working for them rather than you, and who devote more time to explaining their thought process rather than just listing a few stocks.”

And finally, financial advisor Cody Jarrett Measurement of financial vulnerability He says to remember the difference between financial information and financial advice.

When financial education provides objective basics and shares information from reliable sources, such as the IRS or academic publications, financial advice provides actionable recommendations.

Garrett says to listen to influencers who focus on financial education rather than dogmatic advice. He also recommends looking for phrases like “always do this” or “never do this.”

“This is a major sign that the message is ignoring the personal aspect of finance,” he says.

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