We’ve all experienced FOMO at some point and sometimes that leads to money moves we probably shouldn’t be making. When your neighbor drives up in this nice, shiny new car. Don’t you think for a minute, ooo, I need one of those. Or when your friend gets back from her trip to Europe you immediately start planning a vacation. Or when you see an ad on Instagram and you feel like you NEED it. You CAN buy things you want. We just need to create a plan to pay for them and not buy something just because someone else did.
Define Your Financial Goals
To combat FOMO, it’s crucial for you to establish clear financial goals. Defining what you want to achieve with your finances helps you align your actions with your long-term aspirations. Sit down and create a comprehensive plan that includes short-term and long-term goals, such as saving for emergencies, retirement, or a specific milestone. Having a plan that focuses on your objectives will help you resist impulsive spending that FOMO can trigger so you do not feel that you are missing out.
Understand Needs vs. Wants
FOMO often arises from a desire to keep up with others’ lifestyles or possessions. Right now, it feels like it is a million degrees outside and you see a neighbor who just had a pool put in. Wouldn’t it be nice to have a pool like your neighbors do to cool off in, on those hot days? Do you actually need a $90k pool or is it just a want that you have right now because it is hot? Prioritize fulfilling your essential needs first, such as housing, food, and healthcare. Is the pool going to take away from your essential needs? Do you really need it or do you just love the idea of it? By deciding if something is a necessity or a desire, you can avoid impulsive spending that can derail your financial plans. Maybe get a membership to a pool for $100/month and see how often you actually go. You don’t have to give up your financial plans because of something someone else has.
Stick to a Budget
Developing a budget is an effective way to manage your finances and counter FOMO-driven spending. When you start getting the itch to buy something or an experience that someone else has because you think you need it, look at your budget first. Look at your income and expenses, categorize them, and identify areas where you can cut back or save. Make sure that you have a portion of your budget for discretionary spending, allowing yourself to enjoy experiences without compromising your financial health. Sticking to a budget empowers you to make thoughtful choices that align with your goals.
Research and Educate Yourself
When FOMO strikes and before any major purchase, take a step back and conduct thorough research before making any financial decisions. If you aren’t sure where to get advice, you can check out my free course, FinanciALLI Focused Foundations Course, where you’ll learn the financial foundations you need to succeed with your money.
Practice Delayed Gratification
Delaying gratification seems to go against everything happening in the world today. We get everything in an instant. You don’t even have to go to the bank to deposit checks anymore. How many of us actually use them? Everything is directly deposited. Our money is pretty much in our hands when we need them. Need to speak with someone, it’s almost automatic. So much of our lives is a right now, instant life. Watching everyone on social media have what you want makes it easy to succumb to FOMO-induced impulse buying. Click the button on the story and you can have what I have. Take time to practice delaying gratification. Don’t just push the button and buy but take the time to evaluate whether a purchase aligns with your priorities and budget. If you wait before making a purchase, you’ll often find that your initial desire fades, helping you avoid buyer’s remorse and unnecessary expenses.
Celebrate Your Progress
It’s important to acknowledge and celebrate the progress you make towards your financial goals. Celebrating your achievements will help you build confidence in your ability to make smart money moves. This positive reinforcement will help you resist FOMO-induced temptation and stay committed to your long-term financial success. You can do this! You don’t have to have what everyone else has. Focus on what you need in your life to help you meet your financial goals and your life goals.
It is so easy to get lost in FOMO. No one wants to miss out. It is easy to focus on the “I wish I could do this” or “I wish I could have this” but think about your main why. By defining your goals, distinguishing between needs and wants, sticking to a budget, conducting research, avoiding impulsive investments, practicing delayed gratification, and celebrating your progress, you can combat FOMO and make money moves that align with your long-term financial well-being. If you need help, join my program Flourish FinanciALLI so I can help you create a realistic financial plan you can actually stick to without depriving yourself. Remember, this is a marathon, not a sprint.
