Five Wise Investment Tips Without FOMO

Five Wise Investment Tips Without FOMO | Current trends are not limited to the fashion, beauty, lifestyle, and similar industries; they also extend to the world of investment. Consequently, various new investment instruments that appear sophisticated are now gaining popularity.

This has given rise to what is known as FOMO or the fear of missing out. The feeling of FOMO makes us feel outdated, uncool, and out of touch if we don't follow the trend. However, investment is clearly not an activity based solely on trends.

Five Wise Investment Tips Without FOMO

A mid the low level of financial literacy in US, becoming financially savvy is a good thing for millennials to do. However, we need to be careful and not engage in it without any understanding at all. Just because influencers and celebrities endorse it, an investment that should promise returns can end up yielding nothing.

Some of the investment instruments that have recently gained popularity and are loved by those who claim to be up to date include crypto assets, binary options, NFTs, robot trading, and peer-to-peer lending (P2P) investments. However, some of these instruments are used by unscrupulous individuals to defraud their customers.

There are many other types of investments that are interesting to try. Unfortunately, not all of them are promising. Therefore, we must understand the risks and investment schemes thoroughly. The most important thing is to avoid investing just for the sake of following the crowd. Here are 5 wise investment tips without FOMO to avoid falling into scams.

Revisit Your Investment Goals
FOMO is a mindset that likes to follow something that is currently trending. This kind of thinking must be avoided if you are going to invest. This mindset is very vulnerable to falling into fraudulent investments. Be cautious of fantastic and enticing advertisements. People who lack knowledge and only focus on FOMO are the easiest targets for scams. Therefore, you must set your investment goals and strategies to avoid traps.
Match It with Your Capacity
FOMO attracts people to be curious. Therefore, it is not uncommon for many to recklessly spend a large amount of money without careful consideration. This is compounded by the lack of basic knowledge about investments. However, investments always come with risks, which, if not managed properly, can lead to losses. Use disposable income if you want to try something new, meaning money that is not allocated for routine expenses. Remember, do not use funds allocated for investments for priority financial goals, such as retirement savings, children's education funds, and the like. Adjust it to your capacity. If you don't have disposable income or feel unable to bear the consequences of bad risks, don't force it!
Beware of Scams
Regardless of the type of instrument, there are many scams targeting investors. There are many fraudulent investment ads with tempting promises. Moreover, such offers often come through personal channels, such as WhatsApp or SMS. Be cautious! Many offer huge profits in a short time. Believe me, there is never an investment without risk that guarantees huge profits in a short time. Remember the investment principle: high risk, high return.
Manage Your Emotions Well
FOMO is closely related to the psychological aspect, which is an emotion or euphoria that arises when you do something. If emotions are not managed well, your mind won't be clear when making decisions. As a result, you may make the wrong choice. So, when you feel panicked or excessively happy, return to your investment goals. Gather as much information as possible about the investment so that you can analyze the instrument better before making a decision.
Engage in Discussions with Experts or Friends
You can discuss with friends or experts who understand investments. Currently, there are many people who are not financially literate, so there are few references. So, if you have a friend-especially if they have been using the investment instrument for a while-engage in a discussion about the investment product you are going to follow. Of course, you should also consider other opinions... don't just discuss with one person.

Those are the trendy investment tips without FOMO that you can follow. Reestablish your investment goals and needs, and adjust them to your capabilities. Remember, don't just follow what's trending! Financial management is personal, so what works for others may not necessarily work for you!

Happy investing!