Do you suffer from FOMO? It’s a generational phenomenon, an acronym for Fear Of Missing Out. It’s that feeling that makes you go out even when you’re tired. It’s the reason you go to the concert featuring that band you don’t even like that much because your friends are going. An adventure can happen anywhere, and if you’re not there, you’ll be the one person in the world who missed it.
Millennials have the highest debt percentage and lowest credit scores, according to an Experian study. The study also finds half of Millennials were late on at least one payment last year. Could it be because of FOMO?
Let’s look at three ways you can use the Fear Of Missing Out to feed your financial future – rather than your financial fears.
1. FOMO on retirement
Road tripping with friends across the country could produce some priceless memories. What could be even more priceless is getting to take that trip with your spouse and family once you’ve retired. Have fun now and also commit to put extra into an IRA for later. Think of it as investing in future adventures.
2. FOMO on homeownership
The biggest difference in wealth for older generations is time in homeownership. If you rent, you don’t build equity. With a mortgage, your payments build equity. Then, when you pay off the mortgage, your housing costs plummet.
Focus on the wonderful experiences you’ll have in your home — like hosting the holidays for family and friends — rather than not going out to dinner as often. That’s the experience you’re investing in when you position yourself for homeownership.
3. FOMO on financial security
Fifty eight percent of Millennials live paycheck to paycheck. That’s stressful. Put money in an emergency fund to escape that cycle. A few hundred dollars in a savings account can provide peace of mind if an unexpected expense crops up.
Fighting Fear Of Missing Out is a challenge. You only live once, as another generational acronym (YOLO) reminds us. Have the kind of experiences you want to have — just have some now and some later.
If you’re interested in your financial future, get in touch with City CU. We can help you plan for homeownership or retirement. Any great experience, whether it’s living debt-free or retiring early, can be a little easier when you get help. Call or email our financial advisor today and get help overcoming FOMO.