BUDGETING

Is FOMO Breaking Your Budget?

The fear of missing out — FOMO — is defined by Merriam-Webster’s dictionary as “the fear of not being included in something, such as an interesting or enjoyable activity, that others are experiencing.” This can originate from a behavior psychologists call social comparison, where people engage in perpetual evaluation of their own lives in comparison to the lives of others. To pacify any anxieties of falling behind, FOMO can lead to impulse buying, and people may dip into their savings or emergency funds to pay for purchases they may not actually need.

In recent years, social media has only exacerbated this behavior. It’s not just a place for likes, comments, reposts and doom scrolling. It has become a go-to place to make purchases and market products; according to Civic Science, a consumer analytics and polling company, more than one-third of U.S. adults now say they’ve purchased an item directly from social media.

To capitalize on this, influencers have flooded countless spaces where they push trending products to their followers in an attempt to earn money from their sponsors. In return, people who see the content will often feel the need to have the item, or they will have the fear of missing out. According to a recent survey conducted by Bankrate, nearly half of Americans have made an impulse purchase online after seeing a product on social media.

While the pressures and fears amplified by social media may be overwhelming, there are strategies to prevent these impulse purchases driven by FOMO.

Build a Budget

A budget gives you a game plan for managing your money from week to week and month to month. When building your budget, you may choose to cover your savings and necessary expenses first. Then, you can set aside a realistic amount for financial wants — fun, hobbies and social plans. For larger fun purchases, such as trips or technology, you may choose to save up for the things that really matter to you instead of spending money on impulsive FOMO buys. It can also help to look back at past FOMO purchases and see how they affected your finances.

Set Long-Term Goals

Setting long-term goals can help you be more intentional with how you spend your money. Setting a long-term goal, such as building an emergency fund, saving for an apartment or reaching a certain amount in your investment account within the next few years, can help build strong money habits now. As savings and investments can give your money room to grow over time, goals like these can also help you build a strong financial future.

Change Your Online Environment

If most of your impulse purchases happen on social media, you may consider changing your online environment. You can uninstall social media apps that trigger FOMO, unfollow accounts that tempt you to spend, or shop on a computer instead of your phone. You can also remove your card information from apps and digital wallets. When every purchase takes an extra step, it gives you more time to rethink an impulsive buy.

Practice JOMO

Joy of missing out — JOMO — means being present and content with where you are instead of feeling pressure to keep up with everyone else. You may practice saying no to plans or purchases that don’t fit your budget or priorities. You may also make efforts to step away from your phone, spend time outside, practice gratitude, get some rest, or enjoy your own company. Finding simple ways to recharge can make it easier to resist FOMO.

Social media makes it easy to be influenced, compare yourself to others and spend money impulsively. Before you buy something, take a moment to ask yourself why you want to buy it and how it might affect your budget. Being more mindful about your spending can help you avoid FOMO and make choices that support your financial goals.

Sources:

https://www.bankrate.com/personal-finance/social-media-survey/#bankrate-s-key-insights-on-social-media

https://www.fidelity.com/learning-center/smart-money/fomo

https://civicscience.com/in-app-social-media-buying-holds-steady-as-intent-signals-more-growth-ahead/

https://www.forbes.com/councils/forbesfinancecouncil/2025/03/14/dont-let-fomo-wreck-your-finances/

https://www.merriam-webster.com/dictionary/FOMO