FOMO and Investing

Ever since we have been living in a society, FOMO has manifested into our lives in different ways. Known by different names in different times, it all comes down to feeling that you're missing out or not enough because you're not doing something that someone else is doing.

With better phones and the internet, investing and trading are as easy as 4 taps on your phone. Gamification and engaging app design have made investing easy- probably a little too easy.

The ease with which you can invest is taking away from the fact that investing is a serious business, and if not handled with the same seriousness, it could lead to massive downfalls - for the individual investors. Moreover, social media is full of people telling you what's the next best thing to invest in - adding to your FOMO. It is imperative to do your own research or work with an advisor you trust to guide you.

I'm all for making an entry into the market and generating wealth with ease. However as an advisor, it is also my responsibility to educate my clients about the potential risks and the possible rewards.

FOMO being the driver for you to invest is a double edged sword. On one hand, it gets you started which is a great thing, but if it's the major factor with which you construct your portfolio (knowingly or unknowingly) it can hamper your wealth creation majorly.

It can lead to taking riskier bets which don't contribute towards your end goals.

When consulting with an advisor, it is imperative that you understand what is in your portfolio and why. Any advisor worth their salt will be able to explain it to you in a way that you understand.

While investing it is important to know the reason behind your decision making, and also how you plan on remedying the situation in case things do not go according to plan.