Fear of missing out has led many people to make financial decisions they regret due to overspending. If you’re trying to keep up with what other people are buying or events that everyone else is attending, you could be spending money you don’t have for things that you don’t even enjoy. Here are a few tips from Cash Factory USA to help control spending due to FOMO.
1. Set Goals
When you aren’t planning for the future and putting away money for specific reasons, it’s too easy to mistake money in the bank for money you can spend. When you have a savings account, stock portfolio, and a budget, you’re funneling money into places that help you meet financial goals like buying a house or saving for retirement. Only after you’ve contributed to all your necessities, can you look at what you have to spend on leisure activities. Prioritizing your goals helps you control spending by putting everything in perspective. There’s no point in buying tickets to a concert if you won’t be able to pay your rent for the month.
2. Limit Social Media
Social media is the biggest perpetrator of inducing the fear of missing out to many people. They follow celebrities and influencers living a certain lifestyle and try to emulate it without considering what goes on behind the scenes. Limiting your exposure to these types of people on social media will help you control spending. If you’re following accounts that are urging you to spend money you don’t have on travel, clothing, or diet juices — it’s time to unfollow.
3. Stick to a Budget
Sticking to your budget is one of the easiest ways to control spending. If you don’t have a budget, create one to ensure you aren’t overspending each month. A budget can help you clearly see where your money is going, how you can save a little more, and when you have a surplus to spend on leisure activities. Be honest with your friends and family about how much you can spend on fun activities with them each month.
4. Avoid Comparisons
While limiting social media exposure is one way to avoid comparing yourself to others, you should also strive to change your mindset in real life. You may have a number of friends or family members that make you feel like you aren’t living your best life. Don’t compare yourself to them! Focus on your own goals and stick to your definition of success. If you really feel that you need to purchase something extra for yourself, consider learning how to lower your monthly bills or renegotiate your credit card interest rates to ensure you have a little extra leisure money.
5. Try Going Cash-Only
When fear of missing out infects you, it’s easy to see luxuries as necessities. Control your spending in moments when you want to make impulse purchases by adopting a cash-only lifestyle. Avoid even carrying a credit card to guarantee that you have a finite amount you can spend at any given moment. A debit card or cash is the best way to curb overspending and ensure you have financial plans to avoid debt.
Cash Factory USA Advice
At Cash Factory USA, we strive to provide financial advice and solutions through our resource center and blog. Learn more about making smart financial decisions with help from our team.