FOMO & YOLO are killing your budget

This post might come off as a bit of a buzzkill, so I apologize in advance, but I want to delve into this concept a bit more today.

I'll admit, I'm guilty of being a slave to social media too. Spending excessive time on platforms like TikTok and Instagram, I'm bombarded with content on quick wealth schemes, outfit checks, GRWMs, and travel inspiration. Much of this content is captivating, but I've come to realize that a lot of what I spend on isn't fulfilling a need or even a genuine want. It's often just something flashy and cute in the moment, but it lacks real purpose.

Many young people in their 20s and 30s adopt a YOLO (you only live once) mindset, often viewing responsible spending as dull and indicative of an unfulfilled life. TikToks echo sentiments like "Money will come back, but the memories won't." While there's truth to this, much of what we see online is individuals living on credit without a plan for managing expenses, all while showcasing their best lives.

This fosters a sense of FOMO (fear of missing out) for many of us who believe that foregoing luxury trips or not owning the latest handbag or shoes our friends have will deprive us of life experiences. Life is short, and we don't know how much time we have, but maintaining a realistic budget and saving framework allows us to pursue our goals while enhancing our lifestyles.

It's also important to remember that appearances can be deceiving. You may see someone living a lavish lifestyle, while another person lives more modestly. However, the latter might have a $1M portfolio of assets, while the former could be drowning in debt due to excessive spending.

From a Desi/South Asian perspective, there's also often pressure to flaunt success to immigrant peers, whether it's hosting extravagant dinners for any occasion or buying outfits for every event to avoid repeating clothes. While many are moving away from this mindset, it's unproductive to engage in a cycle of social one-upmanship. Finding a balance between cultural norms and individual interests can lead to greater happiness.

Always prioritize your spending based on your goals and focus on what truly matters to you, rather than spreading your resources thin. Of course, if you're not struggling to meet your other financial objectives, there's no need to cut back! For example, if travel is a non-negotiable for you, it's essential to save up for it. Identify credit cards that can help minimize travel costs and maximize rewards, instead of splurging on fancy designer goods and experiences that don't align with your dreams but may offer short-lived social recognition. I think it is important to not base your desires solely on what you see others doing, but rather based on your on individual preferences, even if it's different from others. For example, I may see everyone flocking to a fancy beach destination in East Asia for spring break, but I should stop and think: Is that even adding value to my life? Would I rather spend time at a beach if I'm not even a beach person, or save up for traveling to a different city that's always been on my bucket list instead, even if it's not as popular?

What works for me:
I personally strive for balance because, to be honest, I love shopping and have multiple competing priorities. What works wonders for me is following the TOP Framework I mentioned earlier on my Instagram. By allocating a significant portion of my income beforehand to savings, investments, and fixed expenses towards separate accounts when I get my paycheck via direct deposits, anything that is leftover hits my personal checking account ( <15% of my pre-tax paycheck) is what I consider my 'fun money'. This minimizes worries about budgeting for personal expenses like clothes, beauty services, and fancy dinners for me.