The fear of missing out (FOMO) is real. In a time where social media impacts spending habits, people are often urged to “keep up” and are constantly looking for the next big purchase, rather than save – because you can't Instagram your savings account balance, but you can Facebook that vacation and Tweet that new pair of shoes. So, is the fear of missing out putting you into debt?
FOMO & Debt
According to a recent study by public relations firm Citizen Relations, 56% of Canadian millennials (those aged 18 to 30) feel driven to live beyond their means because of social media. It's the "fear of missing out” on trips, events, meals, shopping, sales – the list goes on.
Keeping up with your friends' spending can be linked to social media as often, when you make a big purchase you share it. If you miss that trip with your friends you are constantly reminded through social that you’re not there from their posts. Another study from Credit Karma found that nearly 40% of millennials have gone into debt to keep up with their peers. In an age of destination bachelor and bachelorette parties and destination weddings – how do you limit yourself to only spend what you have while still being able to afford the important life moments.
Say No To FOMO
Ask Yourself “Why”
Before making a purchase ask yourself, “Am I making this purchase because I can afford it and it will make me happy?” or are you purchasing because your friends have it? Being able to identify a want vs. a need is an important question to ask yourself before you spend.
Figure out what works within your budget and set that as your limit. If you can afford to go out once a week for dinner and drinks with friends then stick to that. Find other solutions to going out, like inviting friends over and everyone brings a bottle of wine and appetizer.
Social Media Detox
Limit your time on social media. Constantly keeping up with social media can directly relate to the feeling of keeping up.
Evaluate Who You’re Following
Clean up the accounts you are following on social media by unfollowing stores and blogs. The less you see, the less temptation you will face to “swipe up” and swipe your credit card.
Buy For You – Not Your Friends
Recognize that everyone’s budget is different. We all have different incomes and expenses, so going on the expensive trip or upgrading your kitchen may have fit into your friends budget, but might not fit in yours and that’s OK.
Ignore The Pressure
Just like in high school, saying “no” to your friends might seem hard, but your friends should understand that sometimes you have other financial obligations. Finding an alternative hang out plan or trip that is affordable or further in the future that gives you time to save are great solutions to avoid the pressures of going out to spend.
Remember, FOMO is not an excuse to put you into debt. We're not saying you should deny yourself of every experience, but instead when making purchases ensure 1) you can afford it and 2) it is making you happy – not your friends. Folding to the pressures of social media and your friends will not help you budget and will affect your finances later in life. It’s important to recognize the pressures of FOMO spending habits so you can spend responsibly.