“A study of happiness found that social media use ranked dead last, out of twenty-seven different tracked leisure activities, in making people happy.” – Scott Galloway, author of The Algebra of Wealth

The French philosopher and mathematician Blaise Pascal said, “”all of humanity’s problems stem from our inability to sit quietly in a room alone.”

The modern version could be, “all of humanity’s problems are a function of sitting inside and clicking buttons on the internet.”

This might garner a chuckle, but there’s scientific evidence (not that you needed evidence to conclude that social media use is suboptimal) that links social media use with all sorts of undesirable outcomes.

Clint Jarvis, founder of Roots (a company to help with smartphone addiction), highlighted a Stanford study that paid 35,000 people to quit social media. This was the largest study on emotional health in history. The results were so shocking, scientists called it “comparable to therapy.”

Here’s how the study went down…

• Over 35,000 people participated
• They were paid to deactivate either Instagram or Facebook for 6 weeks
• The study was done right before the 2020 Presidential Election

The results were undeniable.

Participants didn’t just feel better. They were measurably happier, less anxious, and less depressed.

Facebook users saw a 6% improvement in emotional well-being. Quitting Facebook was 15% as effective as therapy.

Instagram users saw a 4% improvement. Quitting Instagram: 22% as effective

Quitting both eliminated over half of election-related stress.

That’s a massive payoff for something as simple as logging out.

Source: Stanford University

The above graphic shows the average treatment effects of quitting Facebook and Instagram. The red lines to the right of the center column indicate increased levels of happiness and improved emotional states. Subject were also less depressed and anxious.

Despite the benefits, these people didn’t stop using their phones. They just switched to other apps. Instagram users shifted almost all their time to other apps. Facebook users only spent 9 minutes less on their phones per day.

That leaves one to wonder how much bigger the benefits would be if the subjects quit social media all together.

What’s the problem with moderate social media use?

If used responsibly, no problem at all. Social media is great for keeping up with family and friends. This sounds tidy in theory, however, the likely outcome is getting sucked into the algorithm.

Social media platforms aren’t just time-fillers. They’re engineered for endless scrolling, addictive feedback loops, constant comparison.

The result is a massive waste of time.

What does social media use have to do with money and investing?

In my opinion, being good with money means being good with time.

According to Scott Galloway, author of “The Algebra of Wealth,”…

“Social media is likely one of the great wealth destroyers in history. It robs young people of years of time when they need it most—when investing in work and real relationships can compound.”

We’ve created a generation of distracted people wasting hours per week on social media (that doesn’t include time allocated to Netflix, Reddit, Discord, texting, sharing memes, playing video games, etc.).

Based on my career experience, I would wager there’s a correlation between how much people use social media (especially young folks) and financial strain & poor investment decisions.

Fear of missing out on a hot investment theme

Finding it difficult to discern good financial information from click bait nonsense

Watching other people post the highlight reel of their life only to feel like we will never get ahead

The ‘Keeping up with the Joneses’ effect.  We used to compare our lot in life with our neighbors.  We looked the same, dressed the same, worked at the same factory, lived in similar houses. With a few clicks, we can compare ourselves to billions of people, all of which are seemingly living better lives.

To be successful in the digital age, we need to be intentional with our focus, time, and energy. Don’t rely on willpower. Change your environment instead.

• Delete apps from your phone
• Keep your phone out of reach
• Have restricted hours for social media use (e.g. 15 min per day, never before bed)
• Invest in affordable app-blocking hardware
• Pick scroll replacements. Go for a walk, touch the grass, pick up a book, or call a friend.

You don’t need to quit social media. You just need to be more intentional with your time.

After reaching a certain level of wealth, time becomes more valuable than money.

When you are in your rocking chair reflecting on your life’s work, no one is going to wish they spent more time on social media.

After all, we only have 4,576 weeks to live.