Badass vs Dumbass
Master your Financial Kung Fu to be one and not the other.
Go to Sifu’s Notebook for 8 Killer Tips to Avoid FOMO (Fear of Missing Out)
Primer: Who are Sifu & Ronin
Episode 9: Ronin’s Day Off with an Enzo?
Ronin: OMG, dude! Unbelievable, it’s happening again. My feed is filled with peeps showing off their new cruisers, their Euro vacations, their five-star meals. I can’t even scroll for ten seconds without feeling like I’m missing out on everything life has to offer. And then there’s me, penny pinching like a madman for FIRE. FOMO is 100% for reals, chief!
Sifu: Ah, Ronin. The whispers of the relentless FOMO gods are torturing you again.
Ronin: For fuck’s sake man – they’re ripping my heart out through my eye holes! It’s like the universe wants me to blow my emergency fund on a weekend in Bali! Hmmm … sounds pretty great actually. I’ll show these Kardashian-lovers who can party better than all of them! I mean, do I really need to save for retirement when everyone else is out there living their best lives?
Sifu: Watch yourself #1 – it is a very slippery slope you’re on. If you fall into that FOMO pit, even the mighty Sifu would have trouble rescuing you. Tell me, Junior Jedi, do you believe that true happiness can be found in these temporary pleasures others flaunt?
Ronin: Doesn’t it, boss? Look at these exotic shots – isn’t that happiness they’re exuding?
Sifu: Sit down #1. This may be an eye opener for you, but I doubt this is happiness. Social media often shows an extremely curated version of people’s lives. Do you think people show their everyday life or their bad moments? No Way! They tend to post the best of the best moments, along with sweet scenic photos. Kinda like taking 100 shots and discarding 99 to get the cream of the crop. The 99% discards that show stress, fatigue, sadness, financial strain, etc. are the real life that we don’t see. So, it’s a bit of an illusion, isn’t it? How do you compare your life to an illusion?
Ronin: Your rhetorical questions are the best, and easy to answer, bossman! No can do, obviously.
Sifu: Excellent, we’ve crossed the first hurdle, Padawan. This devil, FOMO, casts illusions, that although powerful, should not translate to any action for up and coming Financial Badasses like yourself. Kinda like Medusa: do not look at her unless you want to turn to stone, dude! I have the secrets to protect you from FOMO. You ready for them, MC Ronin?
Ronin: Hey hey hey! I like the sound of that, my #1 fan. OK, let’s kick this pig!
1. Set Clear Financial Goals and Focus on Long-Term Benefits
Sifu: The first step, #1, is to set clear financial goals. You gotta know your FIRE objectives and create a path to reach them. What is your vision for your future?
Ronin: Yes sir. A charmed life where I don’t have to worry about greenbacks. Throw in world travel, stress-free chilling at my beach house, and of course, a very sick whip to get me from my pad to my favorite hangout spots.
Sifu: Big man comin’!! Great, then let that vision be your anchor. Visualize that plush early retirement you seek. Then remind yourself of this whenever you feel the urge to spend recklessly to keep up with the Joneses. The choice is yours Ronin: transient fun or a big full long life filled with your dreams. Eyes on prize, hear me boy?
Ronin: Loud and clear, Captain. I will focus like a laser on that prize – it’s next level, no question! But what about those times when I cash my paycheck and think, “Just a lil indulgence won’t hurt?”
2. Automate Savings
Sifu: Ronin, you’re starting to sound like Gollum when he’s around that damned ring! We need to quash that temptation, before it devours you like a bag of BBQ chips. Automate your savings, Ronin. Set up automatic transfers to your investment accounts so that your money is moved, as soon as your paycheck drops, before temptation strikes. You beat it to the punchline.
Ronin: Auto-Magic! Press play and sit back with popcorn – that’s a strategy I could get into! Piece of cake, no mistake!
Sifu: And #1, when you receive a pay bump or a bonus, increase your savings to reflect it. This prevents lifestyle inflation, a stealthy enemy of financial discipline.
Ronin: Your tips are gold bombs, boss! What’s next up your sleeve, Ninja?
Sifu: That budget we talked about before, Ronin. It is a financial map that guides how you allocate funds for necessities, savings, and discretionary spending. Now that you have it … you did your mandatory homework and created your budget, yes #1?
Ronin: That’s a big 10-4, good buddy. Yessir.
Sifu: Roger that, Ronin. By doing so, you create freedom within structure. From it, you know exactly how much you can spend on essentials versus goodies, so just stick with what you know.
Ronin: Right, Sifu. So, I can still enjoy my best life, just within the limits I set?
Sifu: Bingo bango, #1. Use apps or spreadsheets to track your spending, and review your budget regularly. Adjust it as required. That’s it!
4. Limit Social Media Use
Ronin: But, what about this damned smart phone that’s permanently attached to my hand. Every time I scroll, it’s like I’m being attacked by an army of FOMO Stormtroopers.
Sifu: Yuppers. Social media is the most powerful source of FOMO, Ronin. Do yourself a favor and just limit your time on these platforms, and unfollow accounts that provoke envy or discontent. As an added bonus, do that and you might add 10 years to your life. Doom scrolling kills!
Ronin: Dude, I do that and I’ll get back several hours of free time every day. WINNING!
5. Educate Yourself
Sifu: You betcha, little bossman! Now, knowledge is your strongest defense against FOMO. Continue learning about personal finance, investment strategies, and the power of compounding. When you understand the long-term rewards of your constructive actions, the allure of impulsive spending diminishes. As another bonus, if you wish to use your smart phone and other cool tech devices, but for your continuing education, you have my seal of approval. Def Sifu-Approved!
Ronin: YES! Love me my tech!
6. Surround Yourself with Like-Minded People
Sifu: Next is something a bit more serious. Choose your friends wisely, #1. Surround yourself with those who support your goals and understand the value of financial discipline. Their influence will strengthen your resolve. Unload the rest.
Ronin: Oh boy, sounds like I have to cut out some of the riffraff that love to hang out at the mall and buy their happiness through retail therapy! So, less shopping sprees, more potluck dinners?
Sifu: Bullseye!
7. Limit Exposure to Market Hype
Ronin: But Sifu, what about the latest greatest stock tips that internet gurus are constantly buzzing about on TikTok?
Sifu: Yikes! Beware the melody of mayhem that is market hype. These temptations often come with high risks, and not fully baked with data-backed research. Do not get swayed by these nefarious so-called genius ideas based on some opinion. Do you recall what they say about opinions, #1?
Ronin: What’s that, boss?
Sifu: “Opinions are like assholes, everyone’s got one!” Stay focused on your long-term strategy, and do not be influenced by the promise of quick gains.
Ronin: LOL, good one, My Captain!
Sifu: A true badass master knows that slow and steady wins the race. Stick to a diversified portfolio, and practice patience.
8. Celebrate Progress and Reward Yourself Wisely
Ronin: On the same page, bossman! Now, I’ve been saving, but it feels like a never-ending bad soap opera. How do I stay motivated?
Sifu: One way, #1, is to celebrate your progress. No parade or feasting like a king, but you’re entitled to fun rewards, Ronin. Set milestones for your savings, and when you reach them, reward yourself wisely. Small, planned incentives can uplift your spirit without hijacking your plan.
Ronin: So, like a sweet dinner out to celebrate with my closest buds when I hit my next savings goal? How about taking a day off like Ferris Bueller – FUN! That won’t derail my plan like a runaway train, right?
Sifu: You keep your eyeballs off my Ferrari, Pikachu, and I’ll let you keep your eyeballs. Work for you, cowboy?
Ronin: Sheeeeeeeit. Me like my eyeballs boss. Unfollowing your Enzo Express Instagram as we speak …
Sifu: You are quick on the uptake, #1. One day, it’ll save your bacon.
Ronin: Speaking of which, let’s kick this pig, and EAT!
Sifu’s Notebook
8 Killer Tips to Avoid FOMO
1. Set Clear Financial Goals and Focus on Long-Term Benefits
The first step in overcoming FOMO (Fear Of Missing Out) is to set clear financial goals. Define your retirement objectives and create a detailed plan to achieve them. Knowing what you’re working towards can help you stay focused, and resist impulsive spending. Visualize the comfortable retirement you’re aiming for, whether it’s traveling the world, pursuing hobbies, or simply enjoying a stress-free life. Reminding yourself of these long-term benefits can provide the motivation needed to stay disciplined.
Action Steps:
- Write down your retirement goals and break them into smaller, achievable milestones.
- Create a vision board or use visualization techniques to keep your goals top of mind.
- Regularly review and adjust your plan as needed to stay on track.
2. Automate Savings
One of the most effective ways to ensure consistent savings is to automate the process. Set up automatic transfers to your retirement and investment accounts, so you don’t have to think about it. This “set it and forget it” approach helps you save regularly without the temptation to spend the money elsewhere.
Action Steps:
- Set up automatic transfers from your checking account to your investment & retirement accounts.
- Increase your automated savings rate whenever you receive a bump in pay or bonus.
- Use apps or tools that round up your purchases and save the spare change.
3. Create a Budget
Developing a budget is crucial for managing your finances and avoiding overspending. Allocate funds for necessities, savings, and discretionary spending. By sticking to your budget, you can ensure that you’re saving enough for retirement while still enjoying your best life.
Action Steps:
- Track your income and expenses to create a realistic budget.
- Use budgeting apps or spreadsheets to monitor your spending.
- Review your budget regularly and make adjustments as you go.
4. Limit Social Media Use
Social media can amplify FOMO by showcasing others’ lifestyles, sunny vacations, and shiny new purchases. Limiting your time on these platforms can reduce temptation and help you focus on your own goals. Consider blocking accounts that trigger FOMO or setting specific times to check social media rather than doom scrolling.
Action Steps:
- Engage in offline activities that bring you joy and fulfillment.
- Identify and unfollow accounts that make you feel envious or inadequate.
- Set specific limited times to check social media and stick to them.
5. Educate Yourself
Staying informed about personal finance and investment strategies can empower you to make better financial decisions. Knowledge is a powerful tool in combating FOMO, as it helps you understand the importance of long-term planning and the risks of impulsive spending.
Action Steps:
- Read books, blogs, and articles on personal finance and investing.
- Attend workshops, webinars, or courses to deepen your financial knowledge.
- Follow reputable financial experts and advisors for insights and tips.
6. Surround Yourself with Like-Minded People
Spending time with friends and family who support your financial goals can make a significant difference. These individuals understand the importance of saving and can provide encouragement and accountability. Avoid retail therapy with friends who encourage impulsive spending.
Action Steps:
- Join financial planning or investment groups to connect with like-minded individuals.
- Share your financial goals with supportive friends and family members.
- Plan activities that don’t involve spending money, such as biking, hiking, home movie night, and potluck dinners.
7. Limit Exposure to Market Hype
The latest investment trends and market hype can be tempting, but they often come with high risks. Focus on your long-term strategy and avoid getting caught up in the excitement of quick gains. Remember that slow and steady wins the race when it comes to retirement savings.
Action Steps:
- Stick to a diversified investment strategy that aligns with your risk tolerance.
- Avoid making investment decisions based on short-term market movements.
8. Celebrate Progress and Reward Yourself Wisely
Regularly reviewing your retirement savings and celebrating milestones can keep you motivated. Seeing your progress can reinforce the benefits of staying on track. Allow yourself small, planned rewards for meeting your savings goals. This can help satisfy the urge to spend without derailing your plan.
Action Steps:
- Set specific savings milestones and celebrate when you reach them.
- Treat yourself to small rewards that don’t break the bank, such as a nice dinner or a day trip.
- Reflect on your achievements and how they bring you closer to your retirement goals.
Conclusion
FOMO can be a powerful force, but with the right strategies, you can protect yourself and stay on track for early retirement. By setting clear financial goals, automating savings, creating a budget, and limiting social media use, you can resist the temptation to overspend. Educating yourself, surrounding yourself with like-minded people, and focusing on long-term benefits can further strengthen your resolve. Celebrate your progress and reward yourself wisely to stay motivated. Remember, the journey to financial independence is a marathon, not a sprint. Stay disciplined, and you’ll achieve the comfortable retirement you envision.
