Picture this: you're finally on that well-deserved holiday, determined to switch off from the daily grind. Then your phone buzzes with news that a newly listed stock has surged 100% on its first day, or that a property development has sold 90% of its units within hours. Despite your best efforts to ignore these distractions and enjoy your break, you return home to discover that friends who acted on these opportunities have multiplied their investments tenfold whilst you were relaxing on the beach.
This scenario perfectly captures the fear of missing out (FOMO) that plagues modern investors. At its core, FOMO stems from our insatiable desire for wealth, a desire that grows precisely because we measure our financial success relatively rather than absolutely. We don't simply want enough money; we want more than others have.
The psychology behind investment FOMO is so powerful that some entrepreneurs deliberately exploit it. Thomas Healy, founder and CEO of Hyliion, a clean energy technology company, became the youngest self-made billionaire in the US at just 33. He has openly admitted to exploiting investors' greed and fear, actively cultivating FOMO to secure funding for his ventures. This candid admission reveals an uncomfortable truth: whilst you're trying to make rational investment decisions, others are specifically targeting your emotional vulnerabilities to separate you from your money.
Below are some ways to combat financial FOMO as advised by Sam Dogen, aka Financial Samurai (I strongly encourage readers to check out his blog):
1. Build a Core Portfolio You Rarely Touch
Hold a diversified base you barely ever trade like an S&P 500 index fund, broad bond fund, or real estate allocation. Knowing most of your net worth is riding on the general growth of the economy frees you from chasing every shiny new asset. Over time, this “set-and-forget” block will compound beneath the noise.
2. Allocate a “FOMO Fund”
Designate a small slice of your capital (around 5 percent) for speculative bets. This controlled sliver lets you dabble in emerging trends like cryptocurrency, without risking your core plan. When that itch to chase the next hot ticker strikes, your FOMO fund is there to scratch it.
3. Systematize Your Investing with Automation
Set up recurring transfers into your main portfolios and your FOMO fund. Whether it’s weekly or monthly, dollar-cost averaging removes the emotional roller coaster of timing the market. You’ll build wealth steadily, ignore headlines more easily, and keep your overall strategy intact.
4. Use Opportunity Cost as a Filter
Before jumping on any hype train, pause and ask:
• What goals or meaningful experiences might I be sacrificing?
• Could this money be better spent on travel, education, or time with loved ones?
• Am I trading peace of mind for the thrill of high-volatility speculation?
Weighing potential gains against what you might lose helps you make more grounded, intentional choices. Personally, I find this reflection especially important. There’s often no substitute for quality time with family and I wouldn’t trade peace of mind and those moments of connection for a shot at the next hot investment.
5. Define “Enough” Clearly
FOMO grows when “more” feels indefinite. Decide what financial freedom means for you, whether it’s covering monthly expenses, funding five years of travel, or securing a down payment. Once you hit that benchmark, any extra gains become a bonus instead of a necessity.
6. Change Your Environment
Peer pressure and constant market chatter can inflame FOMO. If you live in a high-intensity financial hub, carve out regular retreats to quieter locales or surround yourself with communities focused on sustainable wealth rather than get-rich-quick schemes. A calmer backdrop makes it easier to stay the course.
I’ll admit I’ve felt the pull of financial FOMO, especially during the crypto craze. Whenever a new altcoin blew up on Twitter or Reddit, it was like a siren song luring me to smash “buy.” To snap myself out of it, I started hunting down contrarian takes, deep dives and warning pieces that laid out exactly why the hype might be hollow and patience pays off far more often than panic.
Financial FOMO is less about the profits you might miss and more about the self-trust and serenity you risk sacrificing. When that itch to chase the latest market frenzy strikes, pause and ask yourself: whose story am I investing in, mine, or someone else’s hype? True wealth isn’t found in fleeting triple-digit returns but in the quiet confidence you earn by investing with clarity, purpose, and unshakable peace of mind.
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