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FOMO | Impulse Buy or Hot Deals
Fear of missing something, as the term implies, quite often people end up buying something they may not need in immediately or because there is a hot deal going on, so they buy it. It could be real estate or a new simply release of an iphone, Samsung phone or a new brand Car.
Real estate in Canada has been crazy since beginning of 2021. It has been a hot market during pandemic time as well.
Since the interest rates are historically low, no one wants to be left behind. People are not only paying more prices but this trend has grown and has lead into a new direction of kind into a bidding situation. People are buying homes in multiple situation.
Can we relate this to an example of FOMO ?
FOMO factor, can end up ruining your future plans and at the same times keep you away from the savings and the opportunities in the longer run.
From investment prospective, saving at an early age plays a bigger and vital role. It is time value of money. Whatever you missed out, it can never be recovered. So the golden rule is, start investing early. Buying things because of FOMO factor, you could end up missing these opportunities.
Buying a hot stock, without knowing too much about it and because everybody is talking about, is a also an example of FOMO, Fear Of Missing Something. How many people loose and miss other opportunities !
Think of buying a hot and expensive laptop over $2500 for a simple everyday task. This job could be done by a new laptop for $1000 as well, unless you belong to those elite or professionals who need it for their specific field.
The savings of over $1000 and investing for 25 years, could mean a big thing when we talk about compounding, dividend and retirement. That’s why financial literacy is so important
If you are not saving, you are sabotaging yourself financially !!