What is FOMO in personal finance?

FOMO—fear of missing out—can push people into purchases or investments because others appear to be benefiting. In personal finance, FOMO often shows up as lifestyle spending, speculative investing or rushing into a product without understanding the downside. A useful defense is a waiting period: define the goal, check how the choice fits your budget, and write down the maximum loss or long-term cost before acting.

Practical takeaway

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