FOMO is abbreviation from fear of missing out. FOMO is an anxious feeling you get when people might be having good time without you.
It is one of psychology condition that can be happen to anyone. Desire is the one of our emotion that responsible play this part. Why FOMO not good for out financial health?
This psychology is always be used by company as marketing strategy, they make limitation in their product to make people FOMO. Irvins is one of the company success using this strategy. The latest company that successful with this strategy is Sony with playstation 5.
Irvin is a food company that sell salted fish skin snack. In their first launch you will see a long queue to buy his products. It always finish quickly, so in order to run out the snacks, a lot of people willing to queue before the stall is open. Other people will curious and follow to join the hype.
FOMO can be bad for some people financial health. FOMO always make people follow to buy something that they don’t need. They just want to follow the trends. Worse part, sometimes they buy a lot of because they think this product is hard to get, so it is better to buy more.
One of the best example of FOMO is Sir Isaac Newton with South Sea Company. At the beginning he got 100 percent profit, but just one month later, swept up in the wild enthusiasm of the market, Newton jumped back in higher price and lost $20.000 (about $4.3 million in 2020).
Even smart people like Newton can not avoid from FOMO. In order to avoid from FOMO, someone need to control his emotions, so he can understand what is important and necessary for him.
if you like my content, you can support me by donate here