Have you ever spent more than you wanted to keep up with your friends? Or to project a certain image online?

Well, you might be affected by financial FOMO.

In this article, we are exploring how FOMO and finances interact, and how you can take control of your spending. Scroll down to learn more about this unspoken but vital topic.

What Is FOMO and How Does It Affect Your Finances

Fear of missing out (FOMO) is a modern phenomenon that has been coined by bloggers and influencers over the last ten years.

It is all about doing things that aren’t the best for us, because we don’t want to miss out or be left behind. This doesn’t always involve your finances, but more often than not, FOMO can leave a dent in your wallet.

For example, your friends want to go out for yet another Christmas meal, but you don’t have enough disposable income. However, against your better judgement, you put the expense on a credit card anyway thinking that you will surely pay it off at some other date.

FOMO and finances are a dangerous duo.

Feeling left out or like you need to compete can lead to spending your savings, living month to month and, eventually, debt.

Experts have also linked FOMO and compulsive spending to social media. Every day, we scroll and see our peers and influencers posting their highlights. We are also inundated with ads from clothing and lifestyle brands. So, it is not surprising that people are overspending to keep up with the fashion they see on social media.

Making a few non-essential purchases isn’t a problem.

However, spending more than you can afford to keep up with others can be deemed reckless spending, and it should be addressed for your financial security and mental health!

See the signs you are living beyond your means here.

How To Get Your FOMO in Check and Save Money

Listen up if you often feel forced to spend money due to trends or societal pressures!

You don’t have to say yes to everything.

This will feel unnatural at first. However, learning to set financial boundaries by prioritizing your realistic budget will pay off in the long run. You will save more money, pay off debt and build healthier financial habits.

Follow these steps to help you get started:

  • Create a budget with a set "entertainment" category for non-essential spending. This will prevent you from overspending.
  • Use debit cards or cash for any non-essentials rather than credit cards. You may even freeze credit cards if needed.
  • Commit to saying "no" to optional expenses and events for one month to build discipline.
  • Explore free activities like public parks, community events or hosting at home. You can find many of these on local blogs or social media pages.
  • Practice mindfulness and gratitude to shift focus from what you lack to what you have.
  • Learn the basics of personal finance and set clear, motivational savings goals.

It won’t be easy at first. But like a new muscle, you must train it until you are strong enough to put your financial needs first.

Learning more about personal finance and how to save can be extremely helpful in this process and will likely motivate you to keep going.

The Outlook

Realising you are spending more than you should can be tough. However, it is the first step to making healthier financial decisions and building up your savings for a future safety net.

Ready to tackle your FOMO and finances? Start learning about personal finance via the Cash ASAP blog today.