Does Social Media Make You Spend More?

Everyone from your pre-teen sister to your 85-year old grandparent has a social media account. They are usually free and can be set up in less than five minutes, so why not, right? With the trend continuing to grow, new sites regularly emerging, and people becoming more tech-savvy with each passing year, do you know how social media might be affecting your wallet? As the trend continues to grow, new sites are developed, and people are becoming more tech-savvy each passing year, how is social media affecting your wallet? Social media came into existence around 1997, but it truly exploded onto the scene in 2003 with sites like MySpace and LinkedIn. Fast forward fourteen years and not much has changed. During those beginning years, social media was used by individuals as a way to stay connected and socialize with friends and family. However, as social media become an integral part of our lives, consumers have demanded sites for different needs. There are at least 60 different social media sites worldwide, and no one is the same. They each serve a purpose for modern businesses and consumers alike, but do they have a hand in how much you spend?

Social Media’s Influence On You

When you log into your social media account, you probably don’t do it with the intention of purchasing anything, but you are constantly bombarded with ads, recommendations, and reviews. An individual sees more than 100 impressions per day, so it shouldn't be surprising that, subconsciously, you are encouraged to make a few purchases here and there. Combined with the fact that the average user spends more than five years on social media and social media becomes the perfect vehicle to push you to make that purchase. When you become aware of the numerous strategies advertisers use, you can begin to maneuver around the social media marketing world with ease.

I Can Buy If I Want To

Retail therapy is most commonly associated with feeling down in the dumps, but have you ever spent money because you were feeling good? According to a 2013 joint- study done by the Columbia Business School and the University of Pittsburgh, they found that Facebook users were more susceptible to spending money when they received a substantial amount of “likes” and positive comments on a regular basis from close family and friends. Our close relationships are important to us and their positive feedback help increase our self-esteem and self-worth. Because you feel good, your brain is flooded with dopamine; this is what controls your reward and pleasure centers, which may encourage you to spend money on something you ordinarily wouldn’t buy.

Easy Fix 

Having self-control is the key to conquering something as fickle as emotion. It may feel good to get those likes and positive comments about that #OOTD (outfit of the day) you posted, but you hurt your finances when you go out and buy something else and post it on social media to start the cycle all over again. Instead, try saving your money so you can spend it on that trip you’ve always dreamt of and humblebrag about that. You’ll get the love of your adoring followers and you can cut back spending as much, so it’s a win-win!

You Are Who You Follow… 

How many of your "friends" on social media are actually your friends in real life? Chances are if you take a closer look at who you follow you'll most likely see a lot of athletes, artists, or models that you would never see in real life. They are online celebrities and are constantly vlogging about their “normal” lives, or posting about the biggest parties or hottest clothes and shoes? While they’re friends (and it should be established that we are using that term loosely) according to you, as far as brands are concerned they’re walking, talking billboards, also known as social influencers.

Brands recognize their star power and collaborate with people like Stephen Curry, Ed Sheeran, and Jackie Aina, who have large followings and can help get their products and services out to consumers at a greater speed. You may not understand how this impacts you, but the formula is quite simple:

You may think you are the exception to the rule, but you're most likely not. If an influencer whose opinion you value, says that the latest make-up brand will have you “beat for

the gods,” then you’re more than likely hopping on that bandwagon and leading the way to the proverbial checkout line. Don’t feel too bad though, at least "45% of global respondents say that reading reviews, comments, and feedback influences their shopping behavior," according to PwC’s 2016 retail survey.

 The Easy Fix

How do you maintain control when you’re trying to keep up with the Joneses? Don’t. It may feel good to hop on the newest trend, and have the latest products and clothes, but how good will it feel to your wallet? If you really like staying up-to-date then instead of buying something every time you see it on your favorite follower, limit yourself to getting something once a month, or even better getting the knock-off version. Sites like eBay or Etsy have a lot of the same items for way cheaper. You will still be the fashionista you always were, now with the added benefit of being frugal too. 

Decisions, Decisions...

Decision fatigue happens every day, at any time -- you may have already gone through it today. While the brain isn’t a muscle, it can get tired just like our muscles become after exercising. Usually, decisions are being made without us even knowing, but what happens when we can’t be on autopilot and need to make a decision? This silent fiend can make itself known at any time and anywhere, but when it comes to social media, sites like Pinterest is where it lives. Synonymous with DIY projects, Pinterest’s vast choices and penchant for creative masterpieces can be blamed for indecisiveness. The majority of its user base are women who are looking for ideas because they’re either getting hitched, expecting a child, or just really enjoying arts and crafts. Having to sift through so many choices, decision fatigue could kick in quickly and make the individual choose blindly or not at all.

The Easy Fix

Stick to the tried and true method of budgeting. When you create your budget, you divide your expenses between wants and needs. If you just need to have that rustic table display, go for it, but help yourself and your wallet by budgeting what you would realistically use to complete the project, so you can make decisions that are prompt and affordable.