Optimal Finance Daily Ep. 3363: Financial FOMO – What, Why and How To Avoid It (Part 1)

Host: Diania Merriam
Guest Blogger: Joel of 5AMJoel
Date: November 23, 2025

Episode Overview

This episode delves into the concept of Financial FOMO (Fear Of Missing Out)—the anxiety and harmful behaviors that arise when comparing your financial progress to others. Diania Merriam reads and reflects on Joel's post from 5AMJoel, exploring how financial FOMO manifests, its potential to undermine both your finances and mental health, and the power of individuality in the pursuit of financial independence.

Key Discussion Points & Insights

1. Defining Financial FOMO

• What is Financial FOMO?
  • Regular FOMO relates to missing out on life experiences.
  • Financial FOMO is rooted in anxiety about missing out on financial opportunities or not achieving as much as others, leading to risky or misguided decisions.
• Quote (Joel, 01:19):
  “Financial FOMO is a little more specific to money and investing. It's when you worry about missing out on financial success or profitable events, and that worry makes you do harmful things to grow your wealth.”

2. FOMO as an Unhealthy Mindset

• Joel stresses that FOMO is not an asset but a liability to true wealth-building.
• Effect:
  Festering worries can prompt knee-jerk financial decisions and cloud judgment.
• Quote (Joel, 02:09):
  “I believe FOMO is an unhealthy mindset that makes people their own worst nightmare. Not only is it poisonous to let fear and anxiety occupy your mind, it leads you to do things you usually wouldn't do.”

3. A Week in the Life of Steve: The FOMO Spiral

• Monday: Steve discovers a podcast guest who made a fortune flipping land. He immediately adds it to his goals, feeling behind.

• Tuesday:
  At the bar, friend Tom brags about his Bitcoin wins. Steve regrets not buying earlier and spends hours researching, but doesn’t act, ending up anxious and restless.

• Wednesday:
  Steve reads about Mark Zuckerberg’s $30 billion philanthropy. At 36, Steve feels inadequate comparing his own charitable activities.

• Thursday:
  Steve binges more finance podcasts, learning about rental investing, stock picking, and blogging—each one making him feel he’s missing another golden opportunity.

• Friday:
  Tom texts: “Bitcoin just went up 22%.” Steve feels worse for not buying in earlier. Online, others announce they’ve reached financial independence.

• Saturday:
  Overwhelmed, Steve checks out six self-help books from the library, only to feel more lost, perpetuating the cycle.

• Key Quote (Joel, 06:26):
  “Everyone around him seems to be getting rich, becoming financially independent and doing it all in a fun and interesting way. Steve is left feeling anxious and worried. Everyone is moving forward and Steve is being left behind.”

4. The Nature of Financial Comparison

• Diania summarizes:
  • The pursuit of financial independence is as much about mindset as money.
  • Comparing your progress to others can “deplete your energy … and you need that energy to improve your finances and foster your own sense of direction.”
• Diania’s Reflection (08:18):
  “One of the things I've come to learn about money is that it's only as valuable as your clarity on how you'll use it and your comfort level with how much is enough. And you know what screws up this balance of clarity and comfort? Comparison with others.”

5. Key Takeaways and Advice

• Every financial journey is unique—different skills, preferences, and circumstances mean everyone’s path will look different.
• Mimicking others’ approaches too closely can “rob us of the clarity and comfort that comes when we're more self-directed.”
• Experimentation and self-reflection are essential for meaningful progress toward financial independence.

Memorable Quotes with Timestamps

• Joel on Financial FOMO:
  “Financial FOMO … is when you worry about missing out on financial success or profitable events, and that worry makes you do harmful things to grow your wealth.” (01:19)

• Joel on Mindset:
  “FOMO is an unhealthy mindset that makes people their own worst nightmare.” (02:09)

• Steve’s Week in a Nutshell:
  “Everyone around him seems to be getting rich … Steve is left feeling anxious … Is there some secret to success he's missing?” (06:26)

• Diania on Comparison:
  “Comparison with others … depletes your energy when you compare yourself to others, and you need that energy to improve your finances and foster your own sense of direction.” (08:27)

• Diania’s Closing Thought:
  “We need to be careful about trying to copy too closely how others are managing their finances because it robs us of the clarity and comfort that comes when we're more self-directed.” (08:57)

Important Timestamps

• 01:09: Introduction to Financial FOMO
• 02:25 – 06:29: Steve’s week—a narrative demonstration of FOMO’s damaging cycle
• 08:18: Diania’s personal reflection about financial comparison
• 08:57: Closing advice and wrap-up

Episode Tone and Language

• Conversational and relatable: Uses realistic scenarios (Steve’s week) to illustrate points.
• Supportive and encouraging: Diania reassures listeners that individuality in financial planning is vital.
• Honest and thought-provoking: Challenges listeners to reflect on their own mindsets and avoid toxic comparison.

Summary

This episode is a vivid exploration of how Financial FOMO manifests and the harm it can cause. Through Joel’s storytelling and Diania’s empathetic commentary, listeners are reminded to focus on their own unique paths toward financial independence, steering clear of destructive comparison and anxiety-driven decisions. Part 2 will dive deeper into the problems FOMO creates and how to avoid its traps.

Stay tuned for tomorrow’s episode for solutions and strategies to combat Financial FOMO!