FOMO stands for Fear of Missing Out . Does it sound familiar with what you might have experienced recently? Let me explain further.
At this time when we all are closely (but virtually) connected 24 hours a day – we can easily come to know who is upto what. When I found (through some or other social media) that my colleague has bought something at an unbelievable price, my immediate feeling could be – I should also go for it before it’s too late. “Flash sale”, “Till stocks last”, “Great Indian Sale”, “Limited period discount” – all these phrases pump up our anxiety level and make us believe – that if we don’t act immediately (without even letting our brains to work) we are going to miss out an excellent opportunity which will never come back.
In reality, this is never true. Instead such fear often make us act stupidly. We lose money and time for something which we hardly require at that moment. If someone has made some great money in a short span of time through making some investment somewhere – should we just fear of missing out and copy him ditto? Where such behaviour may lead us to? How to overcome FOMO if it’s so harmful?
Not that FOMO is injurious to your health, finance or life! It can bring good result, joy or satisfaction also. Let us not paint any behavioural trait as black or white – where in reality they are often grey.
Only one thing that you can do (and should do) is to recognize the presence of FOMO in our behaviour. After acknowledging it, even if your heart and mind says – ‘Yes’ – then go for it. Taste it. On back of your mind, keep this very clear that almost everything comes back except time and relationship.
Now coming back to finance. Whereas delaying investment decision is bad and affects power of compounding negatively, running after a product not knowing fully how it fits into our overall personal finance roadmap is even worse. If a product or stock worked for someone, not necessary that you should also go for it. Your risk profile, investment horizon, income-expense pattern, priorities – could be very different from him/her. So, sit with your advisor and check whether a product is fit for you before jumping the gun.
So thats all from me for today . Stay Healthy and stay happy..
Cheers ,
Abinash