What is consumer FOMO and how can we avoid it?
Have you ever gotten caught up in the hype of a new product? Being bombarded with adverts and reviews on every social media platform can push us into eagerly making purchases without having the proper time to think. Sound familiar? You can thank a little thing called consumer FOMO for this!
We'll be taking a deep dive into exactly what consumer FOMO is and how you can reduce your impulse buying to better your spending habits. Keep reading to find out more!
In this blog:
- What is consumer FOMO and why is it bad?
- What can we do to ease our FOMO?
- What are the benefits of beating your FOMO?
What is consumer FOMO and why is it bad?
If you've never heard the term FOMO or consumer FOMO before, you may be a bit confused. FOMO means fear of missing out, and when applied to situations such as buying the latest and greatest products, it is classed as consumer FOMO.
Due to rampant marketing tactics, it's all too easy to become fearful of missing out on trending products that are being hyped up on social media. Think of the latest product doing the rounds on TikTok or Apple's annual iPhone launch and the hype that is created around these.
Now that you know what consumer FOMO is, you might be wondering why it's so bad. Well, this type of FOMO can lead many people into impulsive buying which often leads to buyer's remorse.
The fear of missing out on a trending product can force you into parting with your money before you have time to sit and think about the purchase. Once you have the item you'll then begin to process the purchase, and while it's not all the time, there are plenty of impulse purchases that once thought over, leave you feeling guilty.
Along with buyer's guilt, an increase in impulse buying can lead to bigger issues such as debt and an unhealthy relationship with money.
What can we do to ease our FOMO?
Do you let the FOMO get the better of you when it comes to purchasing products? Luckily, we have some tips to help you ease your consumer FOMO for good!
Research products before buying
To stop yourself from impulsively buying products you may not need, do some thorough research beforehand. Researching the product in question will help you figure out if it's actually a good product and something you'll actively use.
Researching a product will enable you to find alternatives which can be cheaper. For example, you may be itching to get your hands on the new iPhone model taking social media by storm. With a bit of research, you'll be able to find a similar model for a reduced price if you choose to buy a refurbished phone or a refurbished iPhone device instead!
Sometimes, your research will prove to you that your planned purchase isn't actually the best idea. For example, if all the new iPhone talk is making you feel trigger-happy for that buy now button, a quick Google search will be able to tell you how it compares to the previous model – you might then realise that there really isn't that much difference between the two after all (other than the price tag)!
Give yourself a 24-hour wait period
A good rule to stick by is to wait at least 24 hours before making a purchase. Doing this will ensure that you're not rushing into a decision and that you have time to think about the pros and cons of buying the product.
Use this waiting period to work out if you can afford the purchase and to think about how often you will use the product – sometimes the use doesn't justify the cost!
In most cases, a 24-hour waiting period won't do any harm if you still decide to buy the product. However, if you find yourself struggling to wait the full length of time, it could be a sign of low impulse control.
Build 'fun money' into your budget
If you can, try to keep some extra cash set aside for fun things like treating yourself to a new gadget or heading out for an activity. This will help you budget better and hopefully make your consumer FOMO moments reduce as you'll have a clearer view of your finances.
It's important to have some 'fun money' and to treat yourself every now and then, that way you're not restricting yourself too much and can still get involved in things. FOMO is a completely normal feeling, so giving in every now and then isn't the end of the world, but making sure you're not constantly making consumer FOMO purchases is vital.
What are the benefits of beating your consumer FOMO?
Need some motivation to kick your consumer FOMO habits? Here's what will happen when you reduce your impulse buying and FOMO purchases:
You'll have more cash
It's not rocket science – less spending = more cash! Reducing your impulse buys will leave you with some extra money that you can either save or use on something else. Why not put the extra cash into your 'fun money' pot to use on a treat later down the line?
You'll have a healthier relationship with money
Learning to deal with and beat your bad spending habits will leave you with a healthier relationship with your money, which is a great benefit! Having good money habits is a useful skill to have in life that can lead to a better credit score and better money management for things like household bills and treats.
You won't have junk filling your home
Only buying things you've taken time to decide on will decrease the likelihood of buying products that will be left to gather dust in a matter of weeks. Impulse buying often leads to purchasing items that at the time we think are great, but a month later we end up sticking them in a drawer to never see again. Reducing those rash purchases will keep your house junk-free for the most part!
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