FOMO, or Fear of Missing Out, is a real thing. Experts cite it as a psychological issue that causes anxiety over the possibility of missing out on an experience that others are having. Essentially, it’s the age-old issue of keeping up with the Joneses. Here’s how the fear of missing out can affect your finances and what you can do to help avoid the monetary pitfalls of FOMO.
FOMO Can Cause Financial Problems
When you worry about missing out on fun activities or purchases that others are enjoying, it can add up to some negative consequences, including:
- Impulse spending on unnecessary items can lead to extra debt and less savings.
- Debt accumulation that hinders your ability to buy a home or save for retirement.
- Stress and anxiety can impact our mental and financial health. When you’re paying for a loan you cannot afford, it makes it hard to pay the bills.
5 Tips to Live a Better, Healthier Financial Life
To avoid fear of missing out as much as possible, try these five tips:
- Set goals and stick to them. Focus on your long-term goals instead of short-term pleasures. Schedule vacations a year in advance and always pay yourself first by adding money to your retirement and savings accounts before buying anything fun.
- Practice money mindfulness. Appreciate what you already have and the adventures you can afford.
- Limit social media exposure. Try to avoid comparing your current life with influencers. Yes, some people can afford a jet-set lifestyle, but most of the people who seem to have the perfect online life are buried in overwhelming debt.
- Stick to your budget. This can help you avoid overspending on things you don’t need.
- Get support. Chat with a friend, co-worker, family member or expert about your own fear of missing out. Talking to others can help alleviate the anxiety.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.