EXPERT: Beware viral ‘get-rich-quick’ schemes on social media
GREENVILLE, S.C. (FOX Carolina) - If you’ve spent any time scrolling through Facebook, Instagram or TikTok recently, you’ve probably seen at least one video promising a quick and easy way to make a couple thousand dollars.
Mark Henry, the founder of Alloy Wealth Management, said these videos are red flags.
Henry said he’s seeing more and more videos, some amassing millions of views, giving bad advice. Most often he sees videos promoting investment advice that guarantees a fast profit and warns not to fall for it.
“The idea of getting wealthy in America is still the old fashioned way,” Henry said. “It’s called staying out of debt, investing regularly for a really long time.”
Henry said it’s not that investing is hard -- in fact, some apps are making it easier than ever -- but said you can’t learn everything you need to know from a 90-second video.
“Investing takes discipline and it takes a long time,” he said. “The idea that you can listen to a TikTok ad and get rich quickly -- if it seems to good to be true, it probably is.”
Henry said people should focus on creating a spending plan, building a savings account and paying off debt before investing. Otherwise, you may find yourself needing emergency funds and end up pulling your investments at a bad time.
If you have debt, Henry recommends trying the “Snowball Effect.”
He said make all your minimum payments, but double up on the one for your smallest amount of debt. Pay that off and move on to the next one.
For more advice on money management, click here.
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