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In the age of social media and constant digital connection, the fear of missing out (AKA FOMO) has moved far beyond social events and travel. One of its newer and more harmful forms is financial FOMO, the pressure to keep up with the spending habits and financial decisions of others, whether they are friends, influencers, or complete strangers.
Financial FOMO refers to the anxiety or stress people feel when they see others making purchases, investments, or lifestyle upgrades that they themselves may not be able to afford. This could be a friend buying a new car, an influencer promoting designer items, or seeing peers invest in the latest cryptocurrency or hot stock. The fear is not necessarily about missing a good opportunity, but rather about being left behind.
It’s the feeling that everyone else is advancing financially, enjoying luxuries, or securing a better future while you’re stuck in place.
Financial FOMO can lead to emotional distress, poor decision-making, and serious long-term consequences. Here’s why it can be damaging:
Overspending: Trying to match the spending of others can lead to credit card debt, insufficient savings, and financial instability.
Investment mistakes: FOMO can cause people to jump into risky investments without doing proper research or understanding their risk tolerance.
Reduced self-worth: Constantly comparing yourself to others may lead to feelings of inadequacy and anxiety.
Neglected goals: Focusing on what others are doing can distract you from your personal financial goals and values.
Know your goals, your income, and your budget. When you have a defined financial path, you’re less likely to stray from it just to keep up with someone else.
Unfollow or mute social media accounts that promote unrealistic or aspirational lifestyles. Curate your feed to reflect what motivates you, not what pressures you.
Take time regularly to reflect on what you have, rather than what you lack. Gratitude helps reduce the urge to compare and chase after material things.
When tempted to make an impulsive purchase, give yourself 24 to 48 hours to think it over. Most of the time, the desire will pass, and you’ll avoid spending it unnecessarily.
Normalize financial conversations with trusted friends or a financial advisor. Honest dialogue can reveal that many people feel the same pressures and may not be as financially secure as they seem.
One of the biggest drivers of financial FOMO is the curated content we see online. Influencers often showcase luxury items, exotic trips, and seemingly effortless success. What’s rarely shown is the full picture: sponsorships, debt, or the hard work behind the scenes. This curated lifestyle creates unrealistic expectations and pressures people to spend money beyond their means.
Even in offline spaces, peer pressure can push people to dine at expensive restaurants, join costly group trips, or make purchases they wouldn’t consider on their own. The fear of saying no or feeling left out can override financial common sense. The best thing you can do is be okay with saying “no”.
Your financial goals are important. At the end of the day, it is your responsibility to live within your means and be aware of the money you are spending. Your financial reality and the choices you make serve your long term well-being. Don’t worry about someone else’s highlight reel online; stick to what you know you can do.
