This is not a hate post nor even an endorsement towards any finfluencers. They have been celebrated or hated, depending on where you are standing.
This is aimed at people who buy into their narratives. People who run behind illusions of quick money.
Most influencers in the financial space, more commonly know as ‘finfluencers’, have popped up between 2020 and 2024, when the Indian markets were in the middle of their longest bull run.
They have made huge amounts of money betting in the stock markets through SIP and Futures & Options (F&O). They are the ones selling courses and running youtube channels giving advice to everyone and anyone.
Now, I won’t be taking any names, even though we all know who they are.
I am actually a huge fan of how financial conversations have been normalized in India. The interest in SIP’s has grown as more influencers enter the space. Even non finance influencers speak about these topics at some level.
Financial LITERACY is a must. However, Financial EDUCATION is more important.
Notice how I have clearly differentiated between ‘literacy’ and ‘education’ here.
My definition of literacy is knowing how to read. In the case of financial markets, it means learning to check your saving and having the awareness to also diversify your investments.
However, in today’s day and age, literacy is overhyped. Knowing how to read is not as impressive as it was even 20 years back. It is important to educate yourself.
My definition of education is studying what is written in depth, trying to interpret the content to better oneself and possibly others. In financial terms, this means learning about the various financial instruments and the risks involved.
I don’t intent to become a finfluencer, now or in the near future. Instead, I will leave it to my readers (all 70 of you crazy people) to do your own in depth research regarding these topics.
The reason I write today is because most finfluencers have become drunk on their own power. It has become more about selling courses than actually educating viewers about the markets.
This leads to many making wild suggestions regarding risky investments, promising quick returns. Some have equated the stock markets with the overall economy, and have turned into economists.
Many have also started to criticize the principles espoused by legends like Warren Buffer, Rakesh Jhunjunwala, and others who have made their fortunes through patience and long term investments.
While enthusiastic, these finfluencers have not actually invested over a long period to actually make these observations with clarity. They have made their money in the bull run, but are yet to properly see a bear market.
How to invest when the markets are struggling? What does asset diversification truly mean?
Investing all your money in the stock markets, taking loans to invest in F&O’s, investing in cryptos without fully understanding the market. These are just some of the stock tips being given in the name of financial coaching.
Again, I am not saying if it is right or wrong. My point here is that rather than blindly trusting the words of a face on the internet (including mine), people should be willing to put their own time towards furthering their financial education.
When it comes our own finances, we should be willing to question everything. Question the finfluencers. Question legends like Buffet. And then act on that knowledge.
Do you want your wealth to last over decades, or are you looking to create quick wealth? Act based on your desires, but have the grace to accept the consequences as well.
