The “Joy Of Missing Out” on Black Friday

The exploding popularity of social media has exacerbated a sense of “fear of missing out” (FOMO) in today’s world. It sees us comparing ourselves with the online “best version” of others in terms of their possessions, experiences, successes and happiness which can ignite unhealthy pressure to keep up with others at their perceived level. It may also create a false impression that there is always something better out there to get our hands on.    

In contrast, the “Joy of Missing Out” (JOMO) proposes that it’s not only fine to miss out, but in fact something to savour. While JOMO might not be the most common human experience, it can involve more focus on, and dedication to, the things that really make you happy. And with practice, it can really pay off, creating deeper and more meaningful relationships and healthier finances.

As Black Friday approaches, it’s a timely opportunity to illustrate how JOMO can positively apply to investing. A colloquial phrase coined in the US for the Friday after Thanksgiving, Black Friday marks the start of the Christmas shopping season. However, in recent years, given the tough macro-economic climate and the struggling retail market, it has ballooned into a sales event that goes well beyond the initial concept of one-day of discounts, instead tempting consumers with deals for as long as the entire month of November, or even longer.  

Turn FOMO into JOMO

For consumers, finding joy in being selective in what you buy makes a lot of sense. Not only will your wallet thank you, but you will appreciate your existing possessions more and not waste your hard-earned money on something you don’t really need. Remember that there will be other sales in the future – Black Friday events don’t necessarily offer the biggest discounts or include the best products these days.

Similarly, with investing, it requires practiced skill to be able to take a step back and follow a carefully thought-out plan, rather than make impulsive investment decisions as if you had no future financial needs.

In fact, this Black Friday, instead of jumping on the discount bandwagon, we encourage investors to take a long-term view and try to find the joy in not spending.  This could be the trick that helps you reach your long-term goals of investing in a life-changing asset such as a home, saving for a child’s education, or being able to retire comfortably.  

We all feel the pull of a cheaper price tag. And as the end of the working year draws closer, the desire to treat yourself can intensify. But spending any extra money, or worse – going into debt just to get a good deal - can really cost you in the long run. By all means, buy that special present for a loved-one, but ensure that it fits in your budget for the holidays.

Recent research shows that in 2022, the majority of South Africans are suffering from financial stress. This comes as no surprise, as we contend with increasing food and petrol prices, rising interest rates and a period of extended inflation and global uncertainty. For these reasons alone, as year-end approaches it would be wise to keep your debt as low as possible, and instead invest for the sake of your family and the future you.

Using M&Gs Goal Calculator, you can determine what it will take to reach your individual investment goals, while the M&G Retirement Calculator helps you to stretch your savings towards a more secure and comfortable retirement.

There is no joy in purchasing an expensive holiday or car with debt, and then struggling for years to get out of it. And similarly, no pleasure will be found when facing a difficult retirement with insufficient funds.

At M&G Investments, we strongly believe that investors should avoid following the crowd. In fact, this is a mainstay of our investment philosophy. It’s important to plan, implement and follow your own unique investing path, which should never include FOMO, but could always benefit from some JOMO. This Black Friday, find the joy in mastering your spending and appreciating what you already have.

For more information on investing with M&G Investments, please feel free to contact our Client Services Team on 0860 105 775 or email us at info@mandg.co.za.