Organizing Your Finances
Organizing your finances can be a challenging and multi-layered task. I recently read an article by Personal Finance Educator Tori Dunlap, where she discusses what is called “Financial Fomo” and how it affects our financial decisions and ultimately, progress.
"Financial FOMO is the belief that you are missing out on both savings and spending opportunities (often in pursuit of the opposite). 85% of surveyed Americans report having financial anxiety. It’s no wonder financial FOMO can feel paralyzing, especially given how much financial FOMO comes from scrolling through social media."
In the article, Tori goes into a few different kinds of FOMO - it's definitely worth a read! I wanted to share one with you that might be specifically helpful when it comes to the desire to purchase more stuff.
As a professional organizer, I often see what Tori calls Budgeting FOMO - the desire to spend money when we are trying our hardest to stick to a budget, specifically when paying off debt or saving for a future goal. But as Tori says "When we cut out life’s small “non-essential” joys, we become overzealous. We say no altogether to anything “outside” the budget, and in our pursuit of financial purity, resentment begins to bubble under the surface. Resentment is a big part of FOMO, especially when it comes to budgeting."
She recommends making a list of your three top values. For example, mine right now would be God, my brothers and sisters in Christ and family/my church. Then, when weighing the risk vs reward, look to those three values to help reevaluate if that thing you are thinking of buying is really worth it to you.
Once you've clarified your three values and if you’re still struggling with FOMO, especially surrounding a specific purchase, she gives some great questions to help further clarify your needs and guide your buying behavior.
Does this purchase solve an immediate need?
Can this purchase wait?
Is what I’m going to be spending worth the experience?
Is this purchase in line with my big three values?
What will happen if I don’t make this purchase? (i.e., are there consequences to not making a purchase?)
Is the risk of not purchasing this item greater than the reward of its use? Or vice versa?
None of us are perfect and we all love the dopamine hit (that "feel-good" chemical in the brain) that comes when we purchase something. To overcome it, we simply must create habits that honor our higher-thinking brain, which is based on our values, needs and long-term goals. Once we establish those, we can interrupt the pattern and take control of our purchases and - to a larger extent - our finances!
Wishing you the abundance and freedom you desire!
