As I was scrolling through Yahoo News on a break at work I came across the following headline, “Half of millennials says FOMO is the reason why they spend money they don’t have, according to a new report.” For those of you who don’t know, FOMO stands for ‘fear of missing out.’
Some things millennials are spending money on that they can’t afford include bachelor/bachelorette parties, weddings, birthday celebrations, vacations, concerts and more. While I can understand the concept of not wanting to miss out on major life events/celebrations or even small ones, I cannot wrap my head around people putting a strain on themselves financially by going into debt to make these things work. Here are some ways to avoid FOMO-driven spending.
Learn to Say No
The easiest way to avoid FOMO spending of money that you don’t have is to learn to say no when you truly can’t afford it. This requires you to prioritize yourself and your financial well-being above fun plans. It can be uncomfortable saying no to a friend, especially when it comes to a celebration of sorts, but a good friend should be understanding and want what’s best for you.
Suggest an Alternative Plan
If your friend is throwing a lavish birthday party at an expensive restaurant and you’re really tight on money, suggest a celebration with just the two of you over a reasonably-priced lunch or meet the group for just cocktails afterwards.
Get Rid of Your Credit Card
Credit cards can be a huge temptation for some people. Unfortunately, many people tend to treat credit cards like cash; however, if you don’t truly have the cash to pay that balance off in full when your bill comes due, you are actually paying more for your purchases than they cost due to interest. Also, the problem with this is that this debt may continue building up, becoming harder and harder to pay off. If you are one these people who is just too tempted by your credit card and you tend to give in to that temptation easily, get rid of it.
Plan Ahead
If you really just CAN’T miss out on an event, but you know things are financially tight, plan ahead as much as possible. A majority of times big expenses, like a friend’s destination wedding or birthday party, are known ahead of time, so you should start setting money aside for them by cutting back in other places where you can. This way, it lessens the financial burden or even completely takes it away.
