How Social Media Can Ruin Your Finances

by Redeeming Riches on December 10, 2010

Social media is all the rage for spending time online these days.  Facebook has over 500 million users and Twitter’s micro blogging service is maintaining their hot trend.

If you are not using one of these services you are now in the minority.  These social media services seem to be running our lives, which isn’t a bad thing if you keep it under control.

You may have heard stories about stalkers, failed marriages, and relational fights that started due to an addiction to one of these social media sites.

This addiction can also have a major effect on your finances if you aren’t careful.  Some of these might seem obvious but, hey, sometimes you have to read it just to see it in your own life.

You can lose your job

A recent study in the UK polled 1,000 workers and the results showed 6% of those workers spent at least an hour of time on social media sites during the work day.

These corporations are losing some major productivity and even more; money as a result.  If they haven’t already, companies are going to start monitoring your time on the computer and take the next step of blocking these sites on their internal network.

You will be on a fast track out the door if you have a problem with controlling yourself on the computer at work.

Unless you have a major bankroll or savings, you are going to be taking a major hit on your finances with no income coming into your pocket.

How embarrassing would it be to answer the question of “Why did you lose your job?” with “Uh…Tweeting too much.”

You can tell you really have a problem if your update looks something like this:

Getting hauled out of my cubicle by two security guards for updating my FB status too much. Jerks, lol!

You need to have a data package on your phone

The addiction to social media starts off so innocent. Your friend persuades you to give it a try.  The first couple times you shrug it off and laugh at them.  “You’ll never catch me on one of those sites” you probably said often.

One night, your at home watching “The Biggest Loser” and you pull out your laptop.  You stare at the front page of Facebook and you start to have this massive warfare within you.

No… yes… no…..yes……… no…………… okay, I’ll give it a try.

2 weeks and 120 friends later you’re addicted.

The desire to stay connected ALL THE TIME creeps up.  How can I have access to these sites everywhere I go?  My CELL PHONE!  Ah man, I don’t have a data package with my provider.

Adding a data package can increase your budget by $30-$60!

Do you really have the money for this service?

You will begin to to have the same massive warfare within you all over again.

If you need to justify the cost in your mind, chances are you can’t afford it.  Stay away, until you know you can easily spend money each month for access to the internet on your cell phone.

Spam and Internet Scams

Spammers and scam artists have realized that you no longer spend as much time on your email and now spend more time on social media sites.

“Get rich” scams are everywhere!

These people  are clever and well informed.  They go where you go, and will always stay in front of your face.

The idea of making money online from your house is very appealing.  Waking up at your leisure, watching TV and sipping coffee from your computer sounds like the dream job to most.

Well, take it from me, they don’t work, …okay, some DO work but it requires a lot of time and effort to get to that point of making a descent living from the comfort of your own home.

The scam artists are starting to spam more on social media sites and are hitting the nerve/desire of yours to make good money.  Always keep an eye out for these scams, don’t let them get the best of you and steal your money.

Don’t get addicted

Social media sites are great! They really are fun.  Sharing your life, pictures and videos with your family and friends is a great way to feel connected.

But just like any addiction, it can also ruin your life.  In particular, if you are not careful your finances can take a hit and that is one area in your life that you can’t afford (pun intended) to lose, especially during these times of unemployment and market scares.

Have any other examples how social media can kill  your finances?  Please share below!

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{ 6 comments… read them below or add one }

Cheapskate Sandy December 10, 2010 at 7:27 pm

Good article. I wrote a similar one about the dangers of social media as well called How Social Networking Can Negatively Affect Your Finances (http://yesiamcheap.com/2010/07/how-social-networking-can-negatively-affect-your-finances/). At the time people were saying that I was paranoid, but time always tells and we are now learning how these communication methods can be used to exploit us.

HenryTalksMoney December 10, 2010 at 7:39 pm

I agree. Social media can be a great way to help you propel your career and find people to share your personal finance goals with, but if you don’t use it in a productive way, it’s just a huge distraction that takes away a huge part of your life.

MMarquit December 10, 2010 at 8:34 pm

Great post! Also, it is worth noting that some lenders are starting to do a little social media research as well, looking to see what you say about money, and how you behave. Some employers are looking as well, so you might not get a job if your profile looks “risky.”

Anonymous December 11, 2010 at 1:43 am

I actually had a manager who would search on Facebook to view the profiles of all applicants. Good thing I didn’t have an account!

Joe Porter December 10, 2010 at 8:40 pm

Thanks… That brings up an excellent point. Things are so public online these days… it can take just a quick search for your name and you can see their beliefs..habits… etc.

The Yakezie December 11, 2010 at 5:18 pm

I definitely see the addiction and the interesting fact that there is more traffic on sites during the workday than on the weekends or after work!

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