If you liked the content please make sure to LIKE the video! Thank you! This phenomenona, FOMO, is a term used to describe the feeling of being out of touch with social events. Apps like Facebook, Snapchat, and Instagram are the dominant way people interact with one another. This might seem like a good thing where people can share their culture, food, and experiences with the world, it can also lead to an unhealthy amount of spending.
UNPLANNED PURCHASES:
Chances are if you're on social media, You'll see posts of your friends posting pictures of new clothes they bought, or pictures of that new car, or posting videos from that concert they went to. Because of FOMO you probably want some of that high life. It might just cause you to make some unplanned purchases. 50% of Millenials say that social media pushes them to overspend on things that they can't afford.
INVESTING INTO SPECULATION:
This has been seen in companies like Luckin' coffee, Genius brands, and many more. Where the stock has increased in price dramatically just to fall once more. While the short term gains might look good on paper. Trying to find these stock rallies is like looking for a needle in a haystack. I'm not saying that there is no way to beat the market, but in my opinion chances are just very slim for the average retail investor.
BETTING ON WHETHER THE STOCK MARKET WILL GO UP OR DOWN.
the Subreddit Wallstreetbets generated a lot of press from their plays. Where there is money to be made people will come. The profits that were being generated from these bets were attracting all sorts of people wanting to get a piece of the pie. Soon enough everyone had their reasons of why the market was going down and why they were going to continue to make money betting against it.
Despite the news and negative outlook the market bounced back dramatically. Investors who thought they were going to make easy money off the market quickly realized their bet against the stock market failed.
FOMO is a rarely talked about financial trap that not only the average person faces, but also seasoned investors. Overcoming it is not going to be a one day process. Focus on practicing that mental fortitude everyday to resist it. Take a step back to look at things objectively.
Thank you so much for watching! I hope this will help some of you look at situations like these objectively, so you don't fall into this financial trap!
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