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Why Social Media Influencers Need Financial Advisors
Creatives and influencers do not need to get a finance manager from day one of launching their business, unless they are starting up with solid monetary support.
However, to avoid running into serious difficulties, financial planning must be integrated into the business as soon as possible. It is also important to find experts and trusted financial planners to work with.
- It is not necessary to get a financial planner from the get-go
- Working with a financial advisor will be essential at some point
- There are clear indicators that should let you know when to get help
- Going full-time or having complexities are signs to get a financial planner
The contents of this article are for educational purposes only. They are not intended to be a source of professional financial advice. You will find experts on investments and financial management here. More on disclaimers here.
Financial Difficulties Faced by Social Media Influencers
A number of financial difficulties common to social media influencers include:
Irregular Income An influencer's income can be up today, down tomorrow, and mid some other day. Their incomes are unpredictable and vary greatly from month to month, making it difficult to manage expenses and plan for the future.
Tax Liabilities Self-employed influencers are responsible for paying their own taxes, and may face significant tax liabilities if they don't properly plan and save throughout the year.
Although there are financial influencers, most influencers have their relevance in other niches and usually have no knowledge or experience to make informed investment decisions. This can lead to poor returns or even financial loss.
Cash Flow Management With multiple streams of income and expenses, it can be difficult for influencers to manage their cash flow and ensure they reduce costs.
Scams and Dad Deals While influencers may be attention experts online, they too often fall for scams on social media platforms. Many have been vulnerable to scams and bad business deals, as they may not have the experience or knowledge to spot these opportunities and protect their finances.
Determining Market Value It is also common for influencers to downplay their market value for brand deals and sponsorships, which can result in them accepting less money than they're worth.
Balancing Work and Life They also face the confusion of so much overlap between their work and their personal life in terms of both space and time; their job requires them to constantly produce new content and engage with their audience.
These are some of the reasons why social media influencers need financial advisors. Having a financial advisor can help influencers address these difficulties and manage their finances more effectively.
A financial advisor offers guidance on tax planning, investment strategies, and cash flow management, helping influencers make informed decisions and achieve their financial goals.
When Should You Get a Financial Advisor as a Social Media Influencer?
here are at least two clear indicators that should call your attention as a creative to your need of a financial advisor. These indicators are going full-time and operational complexities.
As a creative, going "full-time" should be your first cue to seek out professionals such as a financial advisor.
Of course, going full time assumes that earnings from your creative channels as an influencer are substantial enough to sustain you and your lifestyle.
An important financial literacy nugget is that you shouldn't let go of whatever else you are doing until your creative channel earnings are substantial enough to solely support you.
Nevertheless, going full-time will always be a leap of faith, and as such shouldn't be taken without careful considerations and calculations. Yes, life is a risk, but a good way to live is by taking calculated risks, rather than acting on naive optimism.
If going full-time didn't alert you enough to get a financial planner, complexities in your operation should bring the message home. Failing to recognize when your business can no longer do without professional finance management services might have undesirable consequences.
Complexities are easy to spot. When the tasks of handling taxes, getting a structure in place, managing your finances and tracking your income and expenses suddenly feels overwhelming, that is a good time to get the help you've always needed.
Influencers and streamers share a lot with pro athletes and celebrities. Just as the latter group needs wealth management experts to be in charge of their finances during days of high income flow, a financial advisor or financial management team is equally beneficial to the former group as they expand their influence and raise their income.
General Services for Social Media Influencers
For everyone including social media influencers, having a financial advisor is highly important and beneficial for many reasons. Here are a couple of them:
Financial planning: A FA can help individuals develop a comprehensive financial plan, taking into account their current financial situation, future goals, and risk tolerance.
Investment advice: A FA can offer investment advice based on an individual's goals, risk tolerance, and current financial situation. This can help individuals make informed decisions about where to invest their money and reach their financial goals more effectively.
Estate planning: A FA can help individuals plan for the distribution of their assets after they pass away, ensuring their loved ones are taken care of and their wishes are honored.
Navigating financial decisions: A FA can help individuals navigate complex financial decisions, such as buying a home, managing debt, or saving for college.
Everyone who intends to build wealth including social media influencers need the same scrutiny in their finances that billionaires use to grow their wealth. Having a financial advisor can provide peace of mind and help individuals make informed decisions about their finances.
Customized Services for Social Media Influencers
Majority of influencers are young and they’re expanding in so many ways and directions that are unusual. As a result, the services offered to them must align with their kind of business. For example, a financial planner can ensure that an influencer's money is put where it can be easily accessed for influencer marketing campaign projects.
Although young influencers want to stack away cash for traditional goals including car payment, home ownership, and retirement, the unstable nature of their income means that financial advisors can help them secure stable liquid assets that will enable them to jump on opportunities as they come.
Other customized services for social media influencer business include:
Influencers’ earnings can be lumpy and lopsided, as their income is based on unpredictable preferences and habits of social media users in terms of activities and page views. Consequently, financial advisors can help them develop a flexible plan that has both long-term and short-term perspectives, such as integrating month-by-month objectives within a 5-year plan.
Building Bigger Reserves
Since many influencers drive their business through luxurious lifestyles, their financial planning may involve creating bigger reserves. This will help to maintain their lifestyles even when their businesses are not making enough.
A financial advisor can help you successfully stabilize your finances and build bigger reserves. However, it is important to choose a financial advisor who is qualified, trustworthy, and aligned with your financial security goals.
Financial Advisors That will Help Transform Your Finances
Below is a brief list of bright advisors with brilliant track records who will help transform your social media influencer business.
As founder of Bay Street Capital Holdings, William's work has provided the necessary expertise for numerous Black and Minority businesses (and individuals) in their wealth-building journeys. In 2021 and 2022, he was ranked among the top 100 financial advisors by investopedia.com.
Ekenna is the Director of Planning at Bay Street Capital Holdings and leads the firm's comprehensive financial planning strategy, which is aimed at turning clients’ financial dreams into reality. He is a Certified Financial Planner.
Ila is a finance management expert with wide experience in real estate. In recent years, she has closed several deals worth tens of millions of dollars. As a social media influencer, Ila can help you secure real estate deals suitable both for your personal and business needs.
Bay Street Capital Holdings
Bay Street Capital Holdings is a Black-owned, independent investment advisory, wealth management, and financial planning firm headquartered in Palo Alto, CA. They manage portfolios with the goal of maintaining and increasing total assets and income with a high priority on managing total risk and volatility. Although many advisors may focus on maximizing returns, they place a higher priority on managing total risk and volatility.
Our founder, William Huston founded Bay Street after 13 years of supporting the United States' largest retirement plan ($650B) Thrift Savings Plan. He is recognized as Investopedia’s Top 100 Financial Advisors for 2022. In California, Bay Street Capital Holdings is the only Black-owned firm out of the twenty firms that received this recognition.
In Scottsdale Arizona, Ekenna Anya-Gafu CFP, AAMS is recognized among the Best Financial Advisors for his responsiveness, friendliness, helpfulness, and detail. Bay Street was founded to advocate for diverse and emerging fund managers and entrepreneurs.
In 2021, Bay Street was selected as a finalist out of over 900 firms across the US in the category of Asset Manager for Corporate Social Responsibility (CSR).