FOMO fallout: Slaying the insatiable media monster

FOMO or Fear Of Missing Out is sending people loco and into debt.

Were living large, affording ourselves the unaffordable, because were ruled by the Fear Of Missing Out, generated by the insatiable social media monster.

Keeping up with the Kardashians has replaced keeping up with the Joneses, says psychotherapist Deborah Mecklinger, of walkthetalkcoaching.com. Adults and not just teens plan their activities with their Instagram and snap stories in mind.

Endless stream of updates, invites and opportunities beckons and keeps us on edge. And posting trips, parties and designer things make for enviable, photo-worthy lives. When we see pictures of great parties, events or captivating moments, we want that as well. And many people desperately dont want to miss out on these moments, says psychiatrist Dr. Reef Karim.

The emotional consequences of FOMO can motivate people positively or negatively to do things or spend things or desperately find things to keep them occupied in their search for moments that define them, says Karim.

Jessica Domingo admits to FOMO – she just cant say no to exciting experiences and making memories, even if it means debt. Shed go and then owe. If someone invites me to Europe, I am going. I believe that the experience is worth the debt I will have to deal with after.

Shed feel pretty bad missing out. I would see all the amazing photos and posts online and wish I went, says Domingo, a 26-year-old working in public relations. Luckily, lots of disposable income while living at home helped quell her FOMO.

Domingo, who thrives on new experiences and not the ooohs and ahhhs from her posts, admits shed likely have enough for a down payment on a house right now if it wasnt for FOMO. And now that shes out on her own, living for today could get costly.

According to debt expert Blair Davidson, its human nature to want to be part of the crowd, part of the fun, but when FOMO has you living in the moment and is putting your financial future at risk, it is time to be concerned.

Green with envy? FOMO is leaving people with less green in their wallet, says Davidson, of bdo.ca, adding that shelling out for entertainment, dining out, vacations and home renovations tops lists, behind mortgage payments.

FOMO fever is rampant: 64% of all Canadians, across all generations, genders, relationship status and incomes, fear missing out, according to a Citizen Relations study. And not only that, its leading to major depression and anxiety for teens, reports a new Australian study.

Davidson saysthat boomers are hard hit by FOMO because theyre also contending with FOHMO – Fear of Having Missed Out – on life experiences, and FOMTB – Fear of Missing the Bucket. Checking off bucket lists can do major damage to bank accounts.

Canadians currently have a record-high debt to income ratio of 164.6%, and more and more boomers are delaying retirement because they feel they dont have enough saved. There are also those who will carry debt into retirement. Bankruptcy and insolvency filings for this demographic continue to increase year over year. Adding further to boomers debt load is the fact that theyre contributing to their adult childrens living expenses and possibly funding their offsprings FOMO? Quite possibly, considering that 70% of Millennials admit to reactive purchases because of FOMO, according to stats from a Citizens Relations study.

And seniors also fear missing out and some are living large. Davidson says that those 65 and over are the fastest growing demographic looking for debt help today. Stats reveal that 10% of those who declared bankruptcy last year were aged 65 and older – a 20.5% increase since 2010.

Tame your FOMO: Tips from Blair Davidson

  • Limit time spent on social media: Establish a cooling off rule where you wait a day, a week or even a month before making any significant purchase. This will give you time to determine if it is a want or a need.
  • Create a special occasion FOMO fund, that can be used for those special events or spontaneous purchases.

Campaign finance reformer Russ Feingold profiting from dark money, GOP group says

A television ad attacking Wisconsin Democrat Russ Feingold, who is aiming to reclaim the US Senate seat he held for 18 years, opens with images of rapidly rotting fruit.

The National Republican Senatorial Committee spot aired in Milwaukee and Green Bay during the GOP presidential debate in Milwaukee on Nov. 10, 2015. It contends that Feingolds time in Washington changed him for the worse.

His values decayed, his principles eroded and he lost touch with Wisconsin, the narrator says midway into the ad. He wanted to get money out of politics. Now hes profiting from that same dark money.

Feingold has long championed campaign finance reforms, though he earned a Full Flop on our Flip-O-Meter for reversing his position on raising most of his campaign funds from Wisconsin residents.

But is Feingold profiting from dark money? That is, money spent in election campaigns by groups that dont have to disclose their donors?

More darkness

Dark money spending is rising, we found earlier this month in rating as True a claim by US Sen. Tammy Baldwin, D-Wis.

So far in the 2015-2016 election, $4.88 million in dark money expenditures, mostly by conservative groups, have been made.

Thats more than 10 times what was spent at this point during the 2011-2012 cycle — when a total of $308 million in dark money was spent.

It remains to be seen how much dark money might be spent on either side as Feingold challenges Republican US Sen. Ron Johnson in 2016, in a rematch of their 2010 contest.

The ad

In the TV ad, when the claim about Feingold and dark money is made, footnotes alluding to two news articles appear on the screen.

The major one was a Milwaukee Journal Sentinel story in June 2015 on spending by two groups Feingold formed in February 2011: Progressives United PAC, a liberal political action committee, and Progressives United Inc., a so-called 501(c)(4) nonprofit organization.

The Journal Sentinel article reported that data compiled by the nonpartisan Center for Responsive Politics showed the PAC had given a mere 5 percent of its income to federal candidates and political parties. Instead, nearly half of the $7.1 million that had been spent went to raising more money for itself.

The article also said Feingold and nine of his former campaign and US Senate staffers drew salaries or consulting fees from the PAC, and five of them also spent time on the payroll of Progressives United Inc., the nonprofit.

PACs, however, are required to disclose their donors. So, our focus here is on the Progressives United Inc. nonprofit. It is a dark money group in that 501(c)(4) groups (a reference to the Internal Revenue Service code) are not required to disclose their donors.

At the same time, nothing prevents nonprofits such as Progressives United Inc. from disclosing donors on their own.

The money

Federal tax filings show Progressives United Inc. paid Feingold as president of the group $10,000 in 2011, $30,000 in 2012 and $19,500 in 2013 — a total of $59,500.

But he is no longer profiting from the nonprofit in that he took a leave from Progressives United after being selected a special envoy to the Great Lakes region of Africa in June 2013. He hasnt received any payments since 2013.

But Progressives United Inc. didnt actually operate as a conventional dark-money group does — at least while it was active.

A Feingold campaign spokesman sent us links (using the Way Back Machine — archive.org) so that we could access pages from the Progressive United Inc. website that have since been taken down.

The donors were listed for 2011, 2012, 2013 and 2014.

But Progressives United Inc. stopped operating at the end of 2014 and its website is dormant.

That means the donor lists are no longer readily available — at a time, with Feingold running for the Senate, when public interest in the lists might be high.

A Feingold campaign spokesman told us the website is no longer active because Progressives United Inc. no longer is taking in income to pay for expenses such as web hosting.

Our rating

The National Republican Senatorial Committee said Feingold wanted to get money out of politics. Now hes profiting from that same dark money.

Feingold received $59,500 in salary from Progressives United Inc., a non-profit founded by Feingold that is not required to disclose its donors, but stopped receiving payments in 2013.

While it was active, the group voluntarily listed its donors on its website. But those lists are no longer readily accessible, since the groups website is no longer active.

For a statement that is partially accurate but leaves out important details, our rating is Half True.

More on Russ Feingold

NRSC says Feingold cast the deciding vote for the largest tax increase in history. Mostly False

Feingold says Ron Johnson opposes entirely a federal minimum wage, except perhaps for guest workers. True

Feingold says Ron Johnson is opposed to all government-assisted student loans. Mostly True