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Fear of missing out spells danger

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Cape Town - Fear of Missing Out (fomo) is a form of social anxiety that has many thinking they could miss an opportunity for social interaction that could be seen as a novel experience, according to Laurence Hillman, MD of 1Life.

"In South Africa fomo is going into dangerous territory considering the lack of financial literacy, accompanied with the great income disparities between rich and poor," said Hillman.  

“The first step lies in breaking this behavioural pattern and training yourself to get into the habit of saying no.”

If you have set a budget because you need to pay off a credit card and you’ve already exceeded your allotted amount of "fun money", then you need to exercise the self-restraint to stay home.

Identifying the difference between what is vital and what is a "nice-to-have" means that you have delayed immediate gratification.

Another way to look at fomo is to remind yourself that other people can have and have made different financial choices from your own.

This may be due to the fact that they are experiencing a different life stage or have made different choices about how they use (or don’t use) their money.

This will constantly bring to light the choices that lie before you.

"Focus on your own financial plan. Don’t worry about keeping up with the Joneses," said Hillman.

Small lifestyle changes can go a long way in helping you manage your budget and ensure that you don’t live beyond your means.

This can include:
 
* Saving your till slips for a month and using these to determine what you bought that you needed and what you could have gone without;

* Then taking the above in account and defining exactly what you need for the month;
 
* Drawing up a budget made up of your income less your expenses, including bank charges and fuel costs;

Tips to help you determine a budget before you shop:

* Work out a weekly or six day menu so that you know exactly what you have to buy and what you will eat to prevent impulsive purchases;
 
* Cook meals in advance and freeze. Take one out in the morning and let it defrost during the day, so you can enjoy a nutritious home-cooked meal instead of splurging on take-aways;
 
* Use comparative price sites to ensure you're getting the best deal;

* Opt to implement meat-free, electricity-free and car-free days;

* Find inexpensive ways to have fun with family and friends, such as picnics in the park;

* Creating a 30-day rule: Whenever you are considering making an unnecessary or expensive purchase, wait 30 days and then ask yourself if you still want that item;

* Keep your distance from lavish friends and family, who live beyond their means, while you are working through your fomo issues and finances.

Look at the bigger picture

"So many people choose to live beyond their means for the immediate gratification and have a blurred barrier between the definition of ‘wants’ and ‘needs’," said Hillman.

"Luxuries like eating out weekly at fast food joints, signing up for cellular contracts that are unaffordable and driving vehicles that are expensive to maintain a need to be reconsidered."

Hillman warns consumers to look at the bigger picture. Fomo has the potential to stop consumers from saving for their child’s financial future or the house they may want to put a deposit down for, or even paying off outstanding debt.  

"The real fear consumers should consider is that they may not be reaching financial freedom because they are borrowing from their future earning potential to live beyond their means," said Hillman.

- Fin24

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