Watching Your Wallet: How to handle Financial FOMO

FRESNO, Calif. (KFSN) — Whether it’s spending on luxury brands or an impromptu getaway, the need to keep up with the Joneses can hinder your financial success.

“First of all, it’s very natural to have those feelings,” says Kikoff co-founder and CEO Cynthia Chen. “People spend a lot of time on social media these days, and they also like to share great experiences with friends and family.”

Chen says when combating Financial FOMO, it’s important to have a personal financial plan, identifying and prioritizing your needs versus wants.

“Look at the necessary spending for the month,” Chen said.

That includes the cost of housing, utilities, transportation, groceries and debt. Then, see what’s left to determine how much you can spend on experiences.

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“It is very important that you set your budget for necessities first,” Chen said.

In addition to choosing travel destinations closer to home or cooking at home instead of fine dining, experts say try saving what you would have spent on takeout.

“Saving $50 and putting it in an investment account or savings account and watching it grow is also a good experience,” Chen said.

Finance experts recommend a cool-off period before making any big purchases and try to avoid triggers — what’s posted on social media isn’t always reality.

“Younger millennials and Gen Z, they get influenced by social media and they really value life experiences a lot,” Chen said.

You can also automate your savings by setting direct deposits with splits or recurring transfers.

This helps you stay consistent and you can set it toward a goal, whether it’s long-term or for a trip.

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