How our urge to splurge is driven by social media
I’m spending too much time on social media. I creep friends vacationing on Facebook, I “heart” fashion influencers on Instagram, and I pin home renovations on Pinterest.
I once viewed a makeup tutorial on YouTube, but got lost after the influencer filled, gelled and voluminized his eyebrows with $75 worth of makeup. Since my brows survived the ’90s, I’m done with facial hair trends.
I know why I’m addicted to scrolling through other people’s lives — it’s because no one really lives this way.
Sure, I’m enticed by the flashy stuff and exotic travels of the online Filterati, but when I see filters imposed over social images, I can’t help but peek under the surface and add up the cost.
Are we buying what our friends and brand influencers are selling?
Yes! Social media lures you to spend, and the cost is real. After studying nearly 700 million shopping sessions across leading retail sites, the e-commerce consultancy group RichRelevance found that Pinterest users spend $170 (U.S.) on average per order — that’s about double what Facebook and Twitter users spend. Hashtag brokeAF. If you’re checking your social feeds anywhere near the global average of 135 minutes per day, chances are you’re dropping some serious coin. The leading culprit is an emotional state called FOMO — here’s how FOMO wires you to spend and how to beat the online urge to splurge.
#FOMO
The fear of missing out, or FOMO, is the new way of “keeping up with the Joneses.” But unlike the Joneses next door, today’s FOMO feeds you a 24/7 global stream from a curated group of friends, celebrities and influencers who eat brunches, buy gadgets and wear luxury clothing.
It’s different from glancing into your neighbour’s yard and just seeing a wellkept lawn.
Social media gives you a front-row seat to everyone’s highlight reel. This intimate view can bring twinges of jealousy and even lead to feeling emotionally gutted when your modest lifestyle appears inferior to the aspirational online collective.
Perhaps the hardest way social media influences spending is through peer pressure.
In a recent survey, Allianz Life insurance company found 55 per cent of millennials have experienced FOMO and 57 per cent spent money they hadn’t planned to because of what they saw on social media.
While millennials are hardest hit, the FOMO phenomenon spans all generations, genders, relationship statuses and income levels.
In a FOMO-specific survey of 900 Canadians by RateHub, a mortgage comparison site, 25 per cent said FOMO is their main motivation to shop and 70 per cent believe that close to one-quarter of their debt is from FOMO overspending. So if you carry a $4,500 credit card balance, then $1,125 would be attributed to FOMO.
Feeling FOMO is one thing. Giving in to it is another. It’s no secret that friends who humblebrag their career accomplishments, purchases and perfect family lives are looking for social elevation in the form of likes, hearts and retweets. Sure, give them a thumbs up, but stay strong. It’s not all real. Fighting FOMO A site with an infinite scroll is bad for your soul, so limiting the time you spend on social media is key to taming your emotional spending.
Look at who you follow and ask yourself, “Does this person give me financial anxiety?” If so, unfollow or mute them.
Before making a reactive purchase online, give yourself a full 24 hours to get over the feeling — you will feel less compelled to make an emotional purchase a day later.
Lastly, add up the cost of all the stuff on a coveted feed — chances are that friend or influencer can’t afford it either.
Now if only I could stop lusting over expensive eyebrow makeup on YouTube. Wish me luck.