The firebrand CEO of VaynerMedia and outspoken social influencer Gary Vaynerchuk is not shy about telling you exactly what he is thinking. Vaynerchuk, who started his media company after scaling his family's retail wine business, has built a following of nearly two million people on Twitter with daily posts highlighting the highs and lows of running a business.
Vaynerchuk also often preaches in his daily vlogs about the societal pressures young people face. Echoing the ethos of "Fight Club" antihero Tyler Durden, Vaynerchuk believes people struggle with money because they spend it in hopes of impressing their peers.
"Buying things to impress people that at the end of the day you don't even like is a really bad idea."
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Vaynerchuk claims the roots of the problem are the illusion of success and insecurity.
"People want to be viewed as successful," he said.
This leads young Americans to struggle with their personal finance goals, constantly spending more than what they can afford. This borderline reckless spending habit puts them in the vulnerable position of not saving enough.
According to Schwab's 2019 Modern Wealth Survey, 49% of millennials (ages 23 to 38) say social media influenced them to spend money.
At the same time, just 40% of Americans are able to cover an unexpected $1,000 expense with their savings, according to personal finance website Bankrate. A recent national survey from the Federal Reserve found 27% of Americans would have to borrow or sell something to pay for a $400 emergency expense; 12% would not be able to cover the expense with any alternative source of money.
Gary Vee does have a solution. "Stay in the cocoon of your own head, and that's when you start getting much happier."
He suggests that consumers forgo buying new expensive items like homes and cars. There is no rush to flaunt your success.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.