Why I stopped following “popular” financial advice on social media

The popular financial tips They tend to be simplistic, decontextualized and, in many cases, dangerous.

Two years ago, my feed was filled with gurus promising financial freedom with foolproof methods. Today, I deleted those accounts.

But it wasn't an impulsive decision. I reached that point after months of loss, frustration, and, most of all, the realization that the real world doesn't work like a reel of 30 seconds.

Most of these viral “tips” lack solid economic foundations.

Even worse, many influencers don't even have a financial background. They just repeat what sounds good, ignoring key risks and nuances.

The myth of “do this and you'll be rich”

“Buy crypto,” “invest in real estate without capital,” “use this app to double your savings.” Sound familiar? The problem isn't the tool, but the generic recipe.

According to a study by the CNMV (2024), 68% of Spaniards who followed viral recommendations without advice lost money in 3 years.

And we're not talking about small amounts: 22% lost more than 10,000 euros.

An acquaintance sold his car to invest in a altcoin promoted by an influencer.

Today it is worth 90% less.

The worst part is that the influencer never revealed that he was being paid by the company behind that cryptocurrency.

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A friend followed the advice to "buy cheap stocks" without understanding the market. She ended up with shares in a bankrupt company, which she can't sell now.

The trap of immediacy

Networks reward speed, not sustainability. Why doesn't anyone talk about the 20 years it took Warren Buffett to build his wealth?

The analogy is clear: we want to run a marathon by training like sprinters. But personal finances are not a sprint, are an endurance race.

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A study of Morningstar (2025) showed that 80% of retail traders lose money over the long term. However, on TikTok, the day trading It continues to be sold as the fast track to riches.

A young man invested his college savings in binary options after watching a promising video. Within three months, he lost everything.

When the “popular” collides with the personal

The popular financial tips They ignore key variables: age, risk aversion, legal obligations. day trading It can ruin a parent with a mortgage, but on TikTok it's #goals.

The Bank of Spain revealed that 42% of millennials take financial risks without understanding the terms (2023). Many signed investment contracts without reading the fine print.

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A family invested in a hedge fund because an influencer recommended it. They didn't know the product had hidden fees of 3% per year. In the end, their profits were minimal.

The psychology behind financial deception

Why do we fall into these traps again and again? The answer lies in human psychology.

A paper of the Harvard University (2024) confirmed that emotional financial decisions activate the same brain areas as gambling.

That is, we are excited by the possibility of winning quickly, even if the odds are against us.

Would you trust a surgeon who operates based on memes? So why do we trust untrained influencers to handle our money?

Two mistakes I made (and how I fixed them)

1. Blind followingI copied a YouTuber's dividend strategy. I didn't research the tax implications. Result: a fine for incorrect reporting.

• Solution: Now I consult a tax advisor before making decisions.

1. Financial FOMO: I bought NFTs at their peak. Today they're expensive images with no market.

• Solution: I learned to differentiate between passing fads and real opportunities.

The alternative: critical thinking + data.

I stopped consuming superficial content and started reading reports from the IMF and books by economists like Thomas Piketty.

I discovered that true financial education does not fit into a reelIt requires time, analysis, and, above all, understanding that there are no magic shortcuts.

The danger of mental shortcuts in finance

Our brains are programmed to look for quick solutions, and that is exactly what the popular financial tips.

Confirmation bias makes us believe more in information that matches what we already think, even if it is wrong.

For example, when an influencer claims that “investing in gold always pays off,” many people accept it without question because it reinforces their desire for security.

However, data from the World Gold Council shows that gold has seen periods of up to five years of negative returns after adjusting for inflation.

The importance of the geopolitical context

What works in the United States may fail in Latin America, and vice versa. A common mistake is to follow investment strategies designed for stable economies without adapting them to volatile local realities.

During the 2024 Argentine crisis, many followers of American "buy and hold" strategies suffered massive losses by failing to account for local hyperinflation.

Meanwhile, those who diversified into dollarized assets protected their capital. This lesson is literally worth its weight in gold.

The hidden cost of financial misinformation

Behind every viral piece of financial advice is an industry that profits from your ignorance.

From trading platforms that profit from your failed trades to miracle courses that sell unattainable dreams, the misinformation business moves billions annually.

Read more: Finfluencers and the risks of online financial advice

A recent OECD report revealed that 731 million financial gurus on social media have undeclared conflicts of interest, promoting commission-generating products regardless of their suitability for the end user.

The silent revolution of critical financial education

While networks sell magic formulas, an alternative movement is emerging based on rigorous analysis and personalized planning.

Communities like Bogleheads and Finance for Mortals are gaining ground by promoting proven, transparent, and adaptable strategies.

The paradox is revealing: true experts rarely go viral, because their teachings lack the sensationalism that fuels algorithms.

As Benjamin Graham said, “In the short run, the market is a voting machine, but in the long run, it is a weighing machine” – and the same applies to financial content on social media.

Board: Comparison of actual vs. promised returns on networks (2020-2025)

Conclusion: Fewer likes, more books

The popular financial tips They are like fireworks: bright, ephemeral and sometimes explosive.

Financial independence is built with patience, not viral videos. If something sounds too good to be true, it probably is.

And you? Do you still trust what looks good on screen?

Frequently Asked Questions

1. Are all financial influencers bad?
No, but many lack real training. Look for those with verifiable credentials (economists, certified advisors).

2. Where can I learn about finance safely?
Books by renowned authors (Rich Dad, Poor Dad is a good start), courses from universities or platforms such as Investopedia.

3. How do I know if a piece of advice is reliable?
If it promises high returns with little risk, be wary. Real investments always carry risks.

Written by Enrique Updated on July 11, 2025