Have you ever made a bad decision that seemed to defy all logic?
Of course, we all have, it happens every day.
For example, a recent study showed that only 1% of MLM (Multi-level marketing) participants actually make a profit. Yet there are floods of people that become affiliated every day. It’s a billion dollar industry.
So why are you so excited to put money into something with such low odds of coming out ahead?
The Psychological Trigger that Promotes Bad Decisions
It turns out there is a psychological trigger that actually suppresses your logic and reason.
As you can imagine, knowing this is extremely important, or you could end up making bad decisions over and over and over and over and over… you get the idea.
And that’s why I invited Sophia Dembling, expert in psychology, to join us on the discussion.
Sophia explains that people absolutely do NOT want to feel like they’ve missed out. She calls it FOMO, or “Fear of Missing Out.” In essence, it transforms the decision making process from logic and reason, to fear. What seems like a bad idea, a useless product, or a really boring evening, is shadowed by the fear that you will miss out on an amazing investment opportunity, a limited time offer, or the night you meet that special someone.
Have you ever experienced this phenomena?
Have you ever bought something because it was on sale, but never used it?
Ever got up early to wait in line for something?
Have you ever made an investment because you don’t want to miss out on the possibility it might make you rich?
Now here is the scary part. Brilliant marketers, advertisers, and salesman know all about FOMO, and use it to manipulate us all the time! They know by appealing to FOMO, they can get you to do what they want.
Think about it. Money is an extremely valuable commodity, and when you fear missing out on money, the psychological motivation is amplified. People will do almost anything.
How to Avoid the Consequences of FOMO
In order to avoid it, you’ve got to first understand it…. check ✓.
The other half is found in words over 3,000 years old.
“The thoughts of the diligent tend only to plenteousness; but of every one that is hasty only to want.” -Proverbs 21:5
FOMO motivates the “hasty” inside us. We are motivated by the hope of saving an extra buck today or turning a huge profit on an investment opportunity. The reality is, these shortcuts are often just expensive setbacks. As the proverb says, those that are hasty will be left with nothing, while those that are diligent, will have plenty.
To avoid FOMO, eliminate fear based decisions.
Now do me a favor and tell me what you think below. Have you ever made a ridiculous or bad financial decision?
Have you ever been motivated by “FOMO”?