For most of us guilty of scrolling on social media, we’re inundated with people seemingly living lavish lifestyles - luxury cars, multiple holidays a year, and extravagant spending on fashion, health and beauty. This glorification and obsession with extravagant displays of wealth is so common, there’s now a term for it – wealth porn. And as a result, more and more people are feeling under pressure to live an A-list lifestyle even when their incomes don’t allow.
Sinead Campbell, Head of Money, Debt, and Quality at Advice NI, explains how social media can impact on people’s finances.
She said, “Sadly we’re hearing of more people, particularly younger people, succumbing to the pressures of the perceived wealth they see on social media. They feel forced to try to emulate a lifestyle that means they are living beyond their means, with many taking on debt to indulge in extravagances that they simply cannot afford.
Read more: Martin Lewis' urgent alert if you earn under £35k you could get £6k payment
Read more: Details on how much several DWP benefits including Universal Credit will rise
“There was a concerning study in the US recently which found that 45 per cent of Gen-Z and Millennials said they were obsessed with the idea of being rich, and comparing themselves to their peers, strangers, and even celebrities. And while this study was carried out in the US, our clients have told us about these same issues confronting people right here in Northern Ireland.
"This distortion between perception and reality is worrying, because it is preventing people from taking the necessary steps towards achieving their financial goals. Put simply, the more we spend, the less we have, and when we feel the need to spend excessively to “keep up” it usually means taking on credit we can’t afford. This results in spiralling debt to credit card companies, banks or buy now, pay later schemes, often with high interest.”
Sinead has provided her advice to help people better manage their finances and resist succumbing to wealth porn.
Be realistic
“Firstly, be realistic about what you’re seeing on social media. It important to recognise that appearances can be deceiving and just because someone appears to be living an enviable lifestyle online doesn’t mean they are, or that they are as financially stable as it may seem. There’s that great saying, “all that glitters is not gold” which is a reminder that it’s more important to be in tune with your own financial wellbeing than someone else’s.
Avoid being impulsive
“I recognise that emotions can be very powerful when it comes to making decisions around how we spend our money. My advice when deciding on a purchase, is to always use the Need versus Want test. Ask yourself - do I need the purchase or do I want it. This helps you to clarify your desires and motivations around spending. Crucially, it helps you to stop and think before taking on debt for non-essential items. Remember short-term dopamine hits that come from spending rarely lead to long-term happiness.”
Know your limits
“If you recognise that social media is having a negative effect on your spending habits, then you could consider deleting the apps for a period or removing certain pages that you follow. Other practices include if you find you’re spending more at night, you could consider blocking social media apps and shopping apps at this time. Similarly, if online shopping is causing you to get into debt, you could restrict yourself to shopping in-store only. If you have your bank cards stored on your phone and on your apps, consider removing them which will give you more time to think about the purchases you’re making.”
Set clear goals
“Managing your finances well is key to achieving good financial health – and improved wellbeing as a result. To help you understand what money you have, create a monthly budget with all your income and outgoings. Any money you have left over you can use to pay off any debts as well as begin a savings habit. You can set savings goals for an something you really want, i.e. a holiday. Once you hit your goal, you’ll feel a great sense of achievement without taking on debt, and this will help you develop healthier financial habits.”
Click this link or scan the QR code to receive breaking news and top stories from Belfast Live. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don’t like our community, you can check out any time you like. If you’re curious, you can read our Privacy Notice.
Trust the experts
“If you’re worried about debt, seeking advice early is crucial. Our debt advice experts provide free, confidential and impartial advice. They understand how difficult it is to talk about debt, they will give you time to tell your story. Debt is common, there is nothing to be ashamed off as it can happen to anyone for various reasons. In 2023, we dealt with over 4,000 cases and £43.4 million in debt, and that there is often an available solution for people who seek help when they need it.”
With 65 member organisations and over 300 trained advisers, Advice NI specialises in offering tailored advice on various issues, including debt, benefits and housing. For free, impartial, and confidential advice, contact Advice NI’s Money and Debt Service at 0800 915 4604 to speak directly with an adviser between 9.00am and 5.00pm, Monday to Friday, or visit adviceni.net
For all the latest news, visit the Belfast Live homepage here and sign up to our newsletter.
English (United States) ·