When FOMO spending eats into your budget

What exactly is FOMO?

FOMO is short for fear of missing out. It’s a perception that you’re missing out on an opportunity, being left out and aren’t part of the action. Now that social media shows us exciting snapshots of other people’s lives on a loop, this feeling has become very common and can also be very costly.

When you see your friends enjoying a concert that looks like fun, you buy a ticket. When you hear about a trendy restaurant on TikTok, you book a table. You do this even if you haven’t budgeted for these activities and you made only the minimum payment on your credit card this month!

When FOMO puts you in the red.

FOMO-related expenses can appear insignificant on an individual basis. However, they can build up over time. If you’re already facing debt problems or have a tight budget, these extra expenses can quickly put you in a difficult position.

Here are a few examples of FOMO that can become too costly.

• You often use your credit card for non-urgent expenses.
• You have difficulty turning down an activity even if you know you can’t afford it.
• You experience stress or regret after accepting an invitation.
• You postpone certain significant expenses such as bills or debt repayment to “live in the moment.”
• You feel overwhelmed by the state of your finances.

The mounting costs of always saying yes.

When you have debts, every decision counts. If FOMO causes you to choose an outing rather than paying off your credit card debt, you risk getting pulled into a vicious cycle.

The consequences are not confined to money problems. In addition to losing control of your finances, you could develop debt-related anxiety, among other things. You could also have more conflict with your loved ones.

How can you regain control without giving everything up?

The good news is that you can have fun without breaking the bank. Here are a few ideas for reining in your FOMO expenses while maintaining an active social life.

1. Allocate a “fun” budget every month.

   A small recreation budget allows you to say yes without overspending.

2. Carefully choose activities.

   Does this activity really interest you or are you afraid of “missing out”? Differentiate between needs and wants.

3. Organize simple activities with your loved ones.

   Have dinner at home, take a walk or go for a coffee. You don’t have to spend a lot or give in to “friendflation” to have quality time with friends and family.

4. Be open about your reality.

   You’ll be surprised to find that many people are in the same situation as you. Talking about it can take the pressure off.

5. Disable social media notifications (at least for a while).

   If you can’t see what other people are doing, your social pressure will decrease. Then you can really focus on yourself.

In a nutshell, limiting your FOMO-related expenses often begins with a simple decision: not always saying yes. One choice at a time, you can gradually regain control and move towards what’s truly important: less debt, better peace of mind and life at your own pace.

If, despite your efforts, you’re unable to overcome your FOMO or you’ve accumulated debts, don’t hesitate to call on one of our Licensed Insolvency Trustees. The first meeting is free.