There’s word out there that disturbs a lot of people and although it’s not a swear word, living under its spell can feel like a curse. That word is FOMO. An acronym for “Fear Of Missing Out”, FOMO is the reason why so many people buy into things they really don’t need or even want.

And it’s also a big reason why many of us end up in debt and eventually, with damaged credit. If you feel like a fear of missing out drives you buying decisions, read on to learn how you can break free from its influence.

A Deeper Look At FOMO

The term FOMO was invented by Harvard MBA Patrick J McGinnis, author of The 10% Entrepreneur. However, the psychology behind the fear of missing out has haunted our psyche from the beginning of time, and it doesn’t just affect Millennials or young people. It affects people of ALL ages and backgrounds.

It has motivated kings of past empires to conquer more empires than they could handle. It’s also the reason why teenagers are notorious for sometimes hanging out with the wrong crowd.

But it’s a big problem for your finance and credit too. Think about it: just about everything you can possibly buy or experience gets a glossy treatment either on a billboard or in an unskippable YouTube ad.

Social media has made things worse.

Your best friend with dozens of Euro trip photos on Instagram can make you feel like you’re too idle. Or the Facebook photo of a long lost friend buying a new house with their new spouse can make you feel like you’ve got some growing up to do. Or the person who’s always flaunting their stylish outfits or hairstyles or fitness trackers can make you feel plain. These feelings can trigger an urge to spend on things you probably don’t need to pay for or simply can’t afford.

When FOMO Overrides Financial Logic

Here’s an example of easily the fear of missing out can eat away at your self-worth and discipline.

You want to take a vacation. It’s been years since your last trip and you never fulfilled your childhood dream of travelling and seeing the world. Your best friends just came back from Australia and all they can talk about was how much of a blast they had. You’d love to go and can even take time off, but you don’t have the funds to pay for this trip.

Of course, you could throw all of your expenses on your credit card- the ticket, the accommodations, the transportation costs. But you know doing that will set you back a few thousand bucks. “Oh well,” you say, “it’s either now or never. Besides, who doesn’t have debt?” you reason.

Throwing on a few thousand dollars worth of debt can have major repercussions on your credit card, however.

• A bigger balance negatively affects your credit utilization ratio which makes up 35% of your score
• Other outstanding debts you may have now become harder to pay, which could mean making late or missing payments down the road (which also lowers your score even more)
• You accrue more interest charges the longer that balance stays on your card, meaning a long-term debt repayment

The above-mentioned scenario is something many people can relate to, even though they wouldn’t want to openly admit it to others.

How To Beat FOMO

The key to overcoming the negative mindset of FOMO is not to earn more money, but rather, learning to crush FOMO itself. There are angles to consider which will help you stave off the anxiety that FOMO brings if you find yourself in a funk.

Tips For Fighting FOMO

• Accept that no one can have it all or do it all at once
• From time to time, look at what you have accomplished or did well
• Remember the green grass principle: sometimes when you get what you want, you may realize that there wasn’t much to it in the first place
• Ask yourself if a short period of enjoyment is worth a long haul of debt and financial struggle
• Ask yourself if you actually want a certain product, experience, relationship even OR, if there’s a deeper void you are looking to fill…
• …if the answer is yes, consider how you can fill that void

A Fear Of Missing Out Is Just That…a Fear

A fear of missing out is no different to a fear of heights or spiders or dogs or even socializing. The threat always seems more real than it actually is. With a fear of missing out, the concern is someday looking back at one’s life and regretting not having done something, which at times, is understandable.

But understand that everything has its two sides. Don’t allow a fear of not having or doing something ruin your finances, because overspending to achieve these things only compounds your debt. And guess what, it doesn’t remove the fear of missing out!

Rather, learn to replace FOMO with different perspectives and angles – that’s how you conquer it. It’s challenging to do but with effort, you’ll start to notice that we all miss out on some things while enjoying other things. More importantly, your hard earned cash will stay with you, rather than get burned on things that bring temporary satisfaction.