Indian Tech Entrepreneur Reveals How Social Media Led Him to Spend Over Rs 5 Crores in Viral TEDx Talk

In today’s digital world, social media has become an integral part of our daily lives. From sharing updates with friends to following influencers and brands, it shapes many aspects of how we think and act. But, as Dr. Somdip Dey, an MIT Innovator Under 35 in AI & Robotics, a Lecturer in Data Science at York St John University, UK, and a Professor of Practice (AI/ML) and Danah Zohar Chair Professor of Quantum Philosophy at Woxsen University, points out in his TEDx talk titled “Is social media the reason you’re broke?”, this digital influence often comes at a high price—financially and mentally.

Dr. Dey, who is also the Cofounder, CEO, and Chief Scientist of Nosh Technologies, a company recognized for pioneering AI-driven food waste reduction, draws from his own eye-opening personal experience in his talk. He reveals how, over the last decade, he spent more than Rs 5.00 crores (over £500,000) on luxury goods—including high-end cars and designer clothes—under the influence of social media. In this shocking narrative, Dey uncovers the unseen forces driving compulsive spending, despite seemingly successful careers and large incomes.

“The digital world is full of curated images that make us feel we need to keep up with a certain lifestyle. I got caught in this cycle myself, buying items that, in hindsight, didn’t contribute to my well-being or happiness,” Dey commented. “Now, I want to use this platform to help others recognize these traps and break free from them.”

The TEDx talk, which was originally delivered at the TEDx University of Essex event, has been selected as a TEDx Editor’s Pick, a prestigious recognition given to talks that have global relevance and impact. The talk, which aired on January 23rd, 2025, has already garnered attention for its candid take on the growing impact of social media on financial well-being.

The Hidden Cost of Social Media

In his TEDx talk, Dey references research that sheds light on the hidden cost of social media. Studies show that over 80% of consumers’ purchasing decisions are influenced by social media posts from their friends, and over 75% are swayed by brands they follow online. These findings highlight how subtle and pervasive digital influence can be in shaping not only our social perceptions but also our financial habits.

Dey introduces two key psychological concepts in his talk: the “Man in the Car Paradox” and the “Diderot Effect.” The first concept, coined by financial expert Morgan Housel, suggests that people often desire luxury items like expensive cars—not for the object itself but for the perceived status, respect and social admiration they represent. The Diderot Effect, named after the 18th-century philosopher, explains how a single purchase can create a cycle of consumption, compelling individuals to buy even more to match the new item.

“Through social media, we’re constantly exposed to images of luxury, success, and the ‘perfect life.’ These images, fuelled by algorithms, can trigger compulsive buying habits. They make us feel that we need these things to be happy or successful, leading to financial instability,” explains Dey.

Practical Strategies for Financial Health

Dey is not just about pointing out the problem—he also offers practical, actionable strategies to help individuals regain control of their finances. He suggests three key rules to combat the algorithm-driven cycle of overspending:

• Limit social media usage to just 30 minutes per day to be more mindful of social media usage and prevent mindless scrolling and impulsive decisions.
• Follow only accounts that add real value, whether they are educational, inspiring, or genuinely beneficial.
• Implement a 48-hour pause before making any purchases influenced by social media to counteract the immediate urge to buy, especially with time-limited offers designed to trigger FOMO (fear of missing out).

Dey emphasizes that these steps are not just about saving money; they are about taking back autonomy in a world dominated by digital influence.

“By being mindful of what we consume—both digitally and financially—we can regain control of our financial future and mental well-being,” Dey concludes.

Global Recognition and Relevance

Dr. Dey’s insights into the intersection of technology, social media, and personal finances have earned him widespread recognition. In addition to his academic and entrepreneurial achievements, he was awarded the Outstanding Achiever in Innovation, Science & Technology at the India UK Achievers Honours in 2023, alongside luminaries such as Parineeti Chopra and Raghav Chadha. This award further cements his reputation as a leader in innovation, particularly in the fields of AI, robotics, and sustainable technologies.

His TEDx talk has sparked important conversations on the mental and financial consequences of overconsumption in the digital age, and its selection as an Editor’s Pick highlights the significance of these issues in a world where social media shapes not only our relationships but our wallets.

Watch the Talk

Dey’s TEDx talk, “Is social media the reason you’re broke?,” is now available on the TEDx YouTube channel. To learn more about the unseen influence of social media on your spending habits and how to regain control over your financial future, watch the full talk here: [Is social media the reason you’re broke?](https://youtu.be/oMhELMg5Jok).