The Fear of Missing Out

FOMO, the dreaded four-letter word that afflicts 99% of us every day. When it comes to money and investing, it reaches another level, especially over these last two weeks where Bitcoin and stocks hit all-time highs. Even DOGE is up 100% in the last 30 days.

It’s hard to watch and not feel like you are missing out, and it doesn’t feel good. The more you are on social media, the worse you feel. Seeing others making money, especially people you know, makes it feel ever worse.

But how quickly we forget everything got demolished just 18 months ago. Remember ZOOM and Cryptopunks? We are back in silly season again, and I’m getting the same questions as in 2021. I totally get it; it’s hard to watch and not feel like you are missing out!

Taking emotions out of money decisions is incredibly difficult, especially when going at it alone. There are too many online inputs these days steering us in the wrong direction. This is why having a set of money rules allows you to control your emotions when making decisions. If decisions go against those rules, you back off. For example, as a rule for myself, I allocate a single-digit percent of assets for “gambling” or literal speculation. That’s because I know I can't eliminate the FOMO, so I allow myself some “action,” but to a limit. And if it all goes to zero, it will hurt, but I won’t be broke.

We all have to live with FOMO. So let’s accept it and at least not allow it to control our behavior. The longer this new “bubble” goes on, the more you are going to feel it. But try to also remind yourself what happened last time and that it will happen again.

If you need help establishing some basic ground rules for yourself around money and spending, contact me. I am here to help.