Don't Let "FOMO" eat your personal finance Goals.

FOMO is an abbreviation of "fear of missing out." As the name suggests, you will always feel like if you don't do it, you are not keeping up with your fellow socialites.

Here are a few questions we get to hear more often:

1) Someone has taken the latest iPhone, when do you plan to replace it?

2) Someone has taken the latest car. When are you planning?

3) Some friends went to some locations last weekend, when are you going?

4) Some big concert is happening in the city, everyone is buying tickets. When are you buying?

5) Someone's Got Nice Diamond Jewelry; when are you buying?

6) Someone just returned from "once in a lifetime" kind of travel. When are you planning for such?

7) Someone had a lavish marriage or bachelor party, when would you have one?

To fulfil such FOMO desires, one needs to dig into personal savings or take on debt, which is called FOMO debt and is rampantly rising.

Most people in the age group of 21 to 36, called "millennials," are prone to succumbing to it.

And in this age group, people have either just started earning or are up to midlife and are earning well. who likely have social influence over them.

Reasons for being under pressure for overspending due to FOMO.

1) Sometimes they feel ashamed to accept, so they can't afford it and spend it, which puts them in debt.

2) Sometimes they fear being treated as outsiders, so they feel pressure to be included in the activity, which they can't afford.

3) Millenials also feel fear about not being invited to future activities.

4) Some millenials feel social pressure, so they try to keep up with the activities they can't afford.

5) Some millenials have a fear of being judged for not participating in an activity they cannot afford.

6) And Lastly, Some Millenials have a fear of losing friends by not participating in the activities that they really can't afford.

FOMO gets millenials into triggered anxiety for unnecessary spending in order to keep up with other peers' spending, which leads to either poor investment choices that burn savings or compulsive unnecessary debt.

In today's time, there are tonnes of offers running on different shopping portals, with different banks providing easy financing without any documents. which adds up to temptation going into finance, but generally it is at higher interest rates as it doesn't require any collateral. But eventually it leads into the FOMO debt trap.

For instance, travel causes 59% of all FOMO. If you’ve even been on a travel booking website, you might have noticed that FOMO tactics are everywhere!

29% of all FOMO is caused by fashion and jewellery, which cause FOMO almost every day due to social media.

Rest comes from cars and phones with their new launches, events, blogs, and advertisements.

How to Overcome FOMO:

Whenever you feel a situation like this, always consult with your family members to see whether this spending decision is really necessary, If they also have some problems deciding it, just take the help of a professional financial advisor who can give a rational budgeting plan for it. This way, you can protect yourself from unnecessary FOMO spending that blows your personal finance goals.

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http://financial-planet.blogspot.com/2023/01/start-personal-finance-planning-right.html