Looking through a filter

Photo edit with phone filter. Natural reality vs fake social media.
Tero Vesalainen / Shutterstock

Weiss says it’s easy to forget that Facebook and Instagram never tell the whole story.

“If we hop on to social media, there’s this different life that’s not reality presented to us… Everyone’s having a $50,000 wedding; everyone’s buying a big grand home,” says Weiss.

“But the reality of it is a lot of people are making very smart, informed decisions. It doesn’t mean they’re not having nice weddings, but they’re balancing that with the rest of their life.”

People don’t post online about their smart investing habits or when they put more money into an emergency fund. And they certainly don't post about how much debt they're taking on.

A distorted image of your friends’ finances can be especially dangerous when you’re on the verge of a huge, emotional decision, like buying your first home.

“We tend to make very bad decisions as human beings. It doesn’t make us bad people — we just make bad decisions the bigger the decision is,” says Weiss. “If you’re experiencing a high level of emotion or stress, it’s actually proven that we’ll make worse decisions.”

Bill Gates made a splash in 2017 when he bought $520 million worth of U.S. farmland, and he’s continued to invest since. What’s in it for Gates?

Read More

What’s the antidote?

Closeup image of a woman close and open a laptop computer after finished using it
Farknot Architect / Shutterstock

Weiss says the real problem people have isn’t poor planning — it’s not having a plan at all.

“One of the biggest mistakes we all make is we don’t set proper goals,” says Weiss. “And I say all of us because although I’m a financial planner, I still make mistakes.”

So what does a proper goal look like? The certified financial planner says to ask yourself three questions: what is it, how much is it and when do I need it?

“Then you can sit down and say, ‘Here’s how much we would need to save for the ideal situation,’ and then you can look at how this impacts the rest of your life,” says Weiss.

“Part of my job is to show you all your options and help you understand what trade-offs might need to be made down the road to help you achieve your goals.”

As for social media, Weiss advocates an “antisocial” policy when it comes to any financial decision. Turn off your phone, stop thinking about what others are doing and focus on your own values and goals.

Emotions are inevitable when you’re planning a wedding or buying a home, but falling back on the plan you’ve created with your financial adviser — or simply having a plan at all — can help cut through the fog.

How to speed up your savings

Group Of People Shopping Concept
Rawpixel.com / Shutterstock

If you have a number of short- or medium-term goals you need a little budget boost to accomplish, you have a few options to generate extra income right now:

  • Slash your insurance premiums. When was the last time you looked around for a better price on your auto insurance? If it’s been a while, it may be costing you more than $1,000 extra every year. Shop around to ensure you’ve really got the best possible rate, then do the same to save hundreds on health insurance, too.

  • Save like a pro. Even if you put yourself on a lean budget, you’ll still need to stock up on supplies every now and then. And when that time comes, use a free browser extension that will scour the internet for lower prices and coupons so you’ll never overpay again.

  • Take on a side project. Have a special talent, like writing, drawing or voice acting? Remote and gig work is here to stay, so it’s never been easier to start a profitable side hustle and find buyers for your skills.

Are you thinking about saving? Well, stop thinking about it!

Take the change out of your piggy bank and make it work for you.

Acorns is a financial wellness tool that automatically rounds up your card purchases to the nearest dollar and puts those savings into an investment account. It takes the worrying out of investing and matches you with one of five investment portfolios.

Take five minutes to sign up for Acorns today and collect a $10 bonus.

About the Author

Sigrid Forberg

Sigrid Forberg

Reporter

Sigrid is a reporter with MoneyWise. Before joining the team, she worked for a B2B publication in the hardware and home improvement industry and ran an internal employee magazine for the federal government. As a graduate of the Carleton University Journalism program, she takes pride in telling informative, engaging and compelling stories.

What to Read Next

5 wise money moves before the Fed starts raising interest rates again

Time's almost up on ultralow rates, so don't be caught off guard.

Want to Earn Big Returns Without the Shaky Stock Market? Try Art

Art investment is no longer reserved for the wealthy

How to get a free credit score

Whether you know your credit score or not, it’s probably having a big impact on your life.

7 Millennial Money Struggles — And How To Start Dealing With Them

Many millennials will likely be able to relate to more than one of these issues.

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.