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Why You Should Be Skeptical of Financial Influencers


We’ve all seen them – young, charismatic individuals on TikTok, Instagram, or YouTube, sitting in their luxury cars, boasting about their overnight success and how they can teach you to do the same. They promise astronomical returns, often in the range of 50%, 100%, or even more per year.

But here’s the deal: consistent returns like that simply don’t exist in the real world of investing. Even Warren Buffett, arguably the greatest investor of all time, has averaged about 20% annual returns over his career. And that’s Warren freaking Buffett!

The Reality of Investing

Investing isn’t about getting rich quick. It’s about building wealth over time through consistent, disciplined action. Here are some hard truths:

  1. The stock market has historically returned about 7% per year on average, after inflation.
  2. Any strategy promising significantly higher returns comes with significantly higher risk.
  3. No one can consistently beat the market over the long term.

The Real Business Model of Financial Influencers

Here’s something crucial you need to understand: many of these influencers aren’t actually making their money from the incredible investment returns they claim to achieve. Their real business model often looks like this:

  1. Affiliate Marketing: They promote financial products or services and earn a commission for each person who signs up using their unique link or code.
  2. Sponsorships: Companies pay them to mention or feature their products in their content. This could be anything from trading apps to cryptocurrency exchanges.
  3. Selling Courses: This is the big one. Many influencers create and sell expensive online courses or “mastermind” programs, promising to reveal their secrets to financial success.
  4. Paid Subscriptions: Some offer exclusive content, newsletters, or “VIP” groups for a recurring fee.

The irony? These revenue streams often make up the bulk of their income, not their supposed trading or investing prowess. They’re selling you the dream of getting rich, while they get rich from selling you that dream.

The Dangers of Following Bad Advice

When you follow advice from unqualified influencers, you’re not just risking your money. You’re also:

  • Developing unrealistic expectations about wealth building
  • Potentially falling for scams or pyramid schemes
  • Ignoring tried-and-true principles of personal finance
  • Paying for courses or programs that offer little real value

What You Should Do Instead

Instead of chasing pipe dreams, focus on the fundamentals:

  1. Live below your means and save consistently
  2. Invest in low-cost index funds for long-term growth
  3. Educate yourself about personal finance from reputable sources
  4. Focus on increasing your earning potential in your career

Remember, building wealth is a marathon, not a sprint. It takes time, patience, and discipline. But the good news is, it’s absolutely achievable if you stick to sound principles.

The Bottom Line

Don’t let flashy influencers distract you from the unsexy truth about building wealth. It’s not about finding a secret formula or get-rich-quick scheme. It’s about making smart, consistent choices over time.

So the next time you see someone promising ridiculous returns, remember this: the only person getting rich quick from that advice is the person selling it. They’re likely making their real money from sponsorships, affiliate deals, and selling overpriced courses – not from the amazing investments they claim to make.

Stay focused, stay disciplined, and trust in the power of long-term, sensible financial planning. That’s the real path to financial success. And trust me, it’s a lot more reliable than anything you’ll find in a 30-second TikTok video or a $997 online course.

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