FOMO can challenge your bank account and savings habit. Read about how to fight it with the help of budget tricks.
Let’s start here, it is a work morning and you are ideally scrolling through your social media when you see your friend leisurely posing on a beach in Thailand. Woah!
Having the time of his life…how must that feel like? You feel a pang of envy burst up inside you.
Well, we have all been there. DO NOT let this feeling deviate you from your financial goal and wellness. Boost your financial motivation with these 8 advices from the richest.
All of us, at some point of our lives have found ourselves trying to ‘keep up with the Kardashians’ but when we look at today's digital world and the presence of social media in it, we are forced to spend whatever we have in the direction of social acceptance.
We often tend to watch other’s lives in digital space and think about how we are not making the most of ours.
Comparing others to ourselves. Thus, begins the loop of FOMO and savings.
Of course, liking, commenting, sharing and endless scrolling on social media can be inspiring but more often than never, it gives a crisis of Fear of Missing out.
Which can gravely affect your financial wellbeing and put a strain in your pocket. Also, let’s not forget about the pressure it puts on your mental health as well.
First things first- What is FOMO?
FOMO, or Fear Of Missing Out, is a feeling of anxiety when somebody feels left out from doing something fun or happening.
Generally, this takes place these days on the social media platforms abundantly- facebook posts, instagram reels or twitter posts.
FOMO also takes place in the way you shop, the difference between things that you WANT and things that you NEED.
For a lot of people, these days, social media is their main community lifeline, and having the impression that you are not part of the group is enough to trigger a stress response like FOMO.
Things like Ubers, espressos, extravagant meals with friends, which can add up rapidly on the off chance that you're not focusing or are going overboard to keep you with other people’s way of life.
Keeping away from FOMO spending doesn't need to mean surrendering fun or nice dinner, or even good time with friends.
It simply means that you should work affordably and attempt to achieve the feeling of ‘content’ by saying NO to overspending.
How can FOMO affect your finances?
‘Fear of missing out’ can cause you to stress over the fact to stay aware of others and maintain an unrealistic lifestyle.
In no time, FOMO can make them spend all the more however feeling less substance.
For instance, suppose your colleagues or friends are taking some time off for a vacation, and you can't stand to go.
You might be carefree, living the moment, and direct all of the expenses to your credit card. You do not think it through, but at the spur of the moment, you don’t want to miss out on all the fun.
All things considered, because YOLO- you only live once,isn’t it? The fact that your friends will have fun and you might miss out on it is worse than falling in debt, is that right?
What you need to learn is to prioritize and plan your finances beforehand. Making a wise decision in the present will always bring out the best in the future.
An attitude is enough to burn the cash you don’t have already and thus, you find yourself falling into a debt trap.
According to a survey conducted by Charles Schwab, called the Modern Wealth Survey, almost 33% of Americans have accepted that their habit of spending is directed by the kind of media they consume on digital platforms like Facebook, Instagram posted by their friends and family.
They also confess that they are likely to spend more than miss out on having fun.
What can you do to stop FOMO from messing up your finances?
Of course! The one stop solution to put a pause in the FOMO situation is to uninstall your social media applications and go on a break, there is still another option that is more rational.
Fighting FOMO is a challenge, you need to prepare yourself mentally and have a determined will-power. Plan, and get set go:
- Overcome the idea of ‘Missing out’
- Plan finances for the month/week beforehand
- Preserve your budget
- Raise the bar of your level of satisfaction
1. Treat social media for what it is
Recall that an Instagram post, for instance, is a show and not a depiction of the real world. Saying this doesn't imply that it's boastful or unscrupulous.
Rather, it's a representation of only a part of life. The photograph or video that you see could be one "awesome" shot out of hundreds of tried and failed shots.
A decent method to manage FOMO under tight restraints is to see the value in what went into making the post attractive.
That way, you can waiver yourself from pursuing flawlessness in the pictures or media that you capture.
Be real even if it is messy or embarrassing. Who can say for sure? You may make someone go ‘haha’ instead of ‘so wow’ and cut the loop of FOMO anxiety across your network on social media platforms.
2. Engage in offline community building
No amount of followers or following can define your worth on the digital platform. More than that, work on building offline relationships that lurches encouragement and positivity in the daily aspects of life.
All things considered, time with companions can calm you down and work on your state of mind and wellbeing.
Furthermore, it can assist you with gaining the sort of experiences that merit catching and sharing on the web.
3. Plan for some fun spending too
Is it true or not that you are tempted to make a sudden purchase when you see stylish new shoes in a post? Or when you see someone on a vacation?
It may very well be an ideal opportunity to make space in your financial plan for your own experience, cool dress, or anything you are chasing or want the most.
Start with baby steps. One of the first initial steps is to get where you're spending your cash. You may use budget calculators online that are user friendly and efficient.
The next step consists of making a budget plan. You can do it yourself, with the help of a planner or also seek help from a financial advisor.
They can assist you with putting your money only where it is necessary and what you want. Instead of letting you spend it carelessly.
A piece of your arrangement may be setting up a tax-exempt bank account (TFSA). This can be an extraordinary spot to stash your money to put something aside for your buy.
When you're putting a part of your budget aside for something you really need, it could be simpler to adapt to FOMO.
That way, when you're enticed by a social media post you can keep your focus to your goal and the reason you're saving for.
4. Avoid carrying cash as much as possible
Well, if you carry cash around wherever you will go, you will have access to limited funds and thus it will reduce your spending habit.
With credit or debit cards there might be a chance that you spend impulsively and since the card serves as a gateway of more cash flow, it is difficult to put a pause or limit the transaction.
Ideally, this is where the FOMO catches up. If you withdraw a fixed amount of cash while going to a dinner or a party, you will have a budget that is set already and thus save you from spending unnecessarily and on the spur!
5. Get invested
Building wealth takes time and for people who have been investing for a long period, time is precious in the market.
Accumulating wealth for a long term
Building wealth is a long-term endeavour, and for long-term investors, your degree of investment funds is the greatest variable in deciding if you can meet your financial objectives.
Also the sooner you begin saving and investing, you get more time for your money to grow potentially because of the power of compounding.
While investing, it's also suggested that you diversify your wealth portfolio across different asset classes such as stocks, gold, bonds and cash investments too.
The perfect blend of all investing power across different sectors will overcome your potential loss in the market as well. You can start Saving & Investing in Digital Gold from Jar with just Rs. 1.