As you wind down for the day, and scroll through your phone, an exciting deal grabs your immediate attention. Instantly, you see yourself making an impulsive purchase to avoid that feeling of FOMO, or Fear of Missing Out.
This digital convenience offers instant gratification and time efficiency, but it could also hamper your journey towards achieving your financial goals. However, with a few mindful steps, you can turn this around while reaping the benefits of the digital era.
Is FOMO costing you more than you realise?
Remember, FOMO looks different to everyone. For some, it would be associated with purchasing a product to stay relevant based on social media trends or supporting their favourite influencer. For others, it would be fuelled by an instant pop-up notification of a flash sale or the most common trigger, peer pressure.
Regardless, it is essential to tackle them. One of the first steps is to understand if your FOMO is really costing you more than you think. Here are some signs to watch out for:
- Procrastinating financial planning
- Finding it difficult to save/invest money
- Struggling to live within your means
- Using buy now, pay later options regularly
- Failing to keep track of your finances
If you notice any of these warning signs, it is time to pause and take necessary preventive measures, including identifying and tracking your personal FOMO triggers, unsubscribing to channels, using ad-blockers, and adjusting your financial behaviours accordingly.
Building smart money habits that work for you
Upon identifying your personal FOMO triggers, take a step back and investigate your broader financial behaviours, from splurging on online shopping to relying heavily on credit cards. However, before making any drastic changes, focus on building small yet smart money habits, including:
- Creating a financial plan: Analyse your financial situation, set financial goals, and create a plan that works for you. Read more about financial planning here.
- Automating savings and investments: Not only does this help reduce the temptation to spend but it also lowers the chances of overdue payments. Now, you can schedule payments directly from your bank account, using a calendar app, or an automatic savings tool.
- Paying debts on time: Have a debt management strategy like the snowball (clearing small debts first) or avalanche approach (paying high-interest debts first).
- Avoiding lifestyle inflation: Lifestyle inflation happens when your income goes up. Stay mindful and live within your means by opting for home-cooked meals, public transportation, or thrifting.
- Taking educated risks: Risk is a part of growth, but it must be informed. Conduct your research, understand the market and its trends, and weigh the pros and cons.
Inculcating these habits and practicing them regularly can improve financial behaviours, help tackle FOMO and lead the way towards financial freedom. Explore more about financial freedom with practical tips from our specialists at Salama here.
Mastering digital spending with small yet impactful changes
The rise of banking apps, e-payment methods, and online financial technology or fintech services has made digital spending easier but can also make financial discipline difficult. It’s easier than you think to take control of your digital spending habits by making the best out of fintech and other solutions. Here’s how:
- Audit your subscriptions: Review your bank statement, identify services that renew automatically, and cancel unnecessary subscriptions.
- Set up spending alerts: This can be through SMS, email, or pop-up notifications, helping you keep track of your spending in real time.
- Use price tracking tools: Comparing prices can provide valuable insights and help make informed decisions, be it through price tracking/comparing websites, applications, search engines, or plugins.
- Change your attitude towards spending: Create a 24-hour rule, where you pause for a day before making a purchase that is less of a need and more of a want.
By making these small yet powerful changes, you can move away from impulse purchasing due to FOMO towards an intentional journey to achieving financial freedom.
While Global Money Week may have passed, its message stays relevant. This Financial Literacy Monthly and beyond, let us continue to take small, positive steps towards building a secure and empowered financial mindset.
