Business

Staging A Home Is Worth It Because Buyers Lack Imagination

When it comes to selling a home, first impressions are everything. Yet, many sellers make the mistake of thinking buyers can look past an empty room, outdated furniture, or a poorly lit space. The reality? Most buyers have little imagination. They struggle to visualize a home’s true potential unless it’s presented to them in a polished, aspirational way.

This is why staging a home is one of the highest-ROI strategies you can use when selling. A well-staged home creates an emotional connection, helps justify a higher price, and speeds up the sale. In a competitive market, it’s often the difference between multiple offers and your listing sitting for months.

As someone who has bought and sold multiple properties, I’ve tested both approaches—selling staged and unstaged. The results? Staged homes always attracted more interest, leading to stronger offers.

As a relatively frugal person with a decent imagination, I was skeptical about paying for staging for years. But in hindsight, the three best deals I ever purchased were on unstaged homes. There was far less competition, and the sellers were more receptive to my real estate love letters and quick-close offers.

If you’re on the fence about staging, here’s why it’s worth it. I’ll also share the estimated cost to stage various types of property, as well as how to get staging done for free.

Most Buyers Can’t See Beyond What’s in Front of Them

It’s easy to assume buyers can picture how a home could look with their furniture and style. But most people struggle with spatial awareness. If they walk into an empty living room, they often can’t tell whether a sectional will fit. If a bedroom is poorly arranged, they might assume it’s too small for a queen-size bed, even if dimensions say otherwise. All these doubts put the brakes on submitting a strong offer.

This problem is even worse with outdated or unattractive interiors. A 2021 report from the National Association of Realtors (NAR) found that 82% of buyers’ agents said home staging made it easier for clients to visualize a property as their future home. Unstaged homes, especially those with strong personal decor or wear and tear, create unnecessary distractions.

Buyers aren’t just shopping for a house; they’re shopping for a feeling. They want to step inside and instantly picture themselves living there. Take out those personalized items and pictures! If they have to work too hard to imagine that feeling, they’ll move on to a home that makes it easier for them.

Staging Helps Justify a Higher Price

The goal of staging isn’t just to make a home look nice, ultimately, it’s to increase perceived value. The better a home looks, the more buyers believe it’s worth.

A 2023 survey from the Real Estate Staging Association (RESA) found that staged homes sold for an average of 5-10% more than unstaged homes. This makes sense because buyers emotionally attach value to a space that feels move-in ready.

Let’s say you’re selling a home for $1 million. A 5% higher sale price from staging translates to $50,000 more in your pocket. Compare that to the $3,000–$8,000 you might spend on professional staging—it’s a strong return on investment.

The psychology behind this is simple. When buyers walk into a beautifully staged home, they assume:

The home has been well cared for
It’s in better condition than unstaged homes
They can move in with minimal effort

In contrast, an empty or poorly presented home invites doubts:

“Will my furniture fit here?”
“Does this awkward room layout work?”
“How much will I need to spend on upgrades?”
“Why is the seller so cheap? Is there anything else they are cheapening out on?”

The more questions buyers have, the less willing they are to pay top dollar.

The Cost of Staging a Home

While staging clearly adds value, many sellers hesitate due to the cost—I was one of them for years. What finally convinced me to give it a try was realizing that selling a home is already expensive, so spending a little more to present it in the best possible light felt worth it. At least I was getting something from it versus just paying transfer taxes and fees.

The good news? Staging doesn’t have to break the bank.

Low-End Staging Costs ($500 – $2,000):

DIY staging with decluttering, rearranging existing furniture, and adding fresh decor
Professional consultation with a stager ($200–$600) for personalized recommendations
Renting a few key furniture pieces for staging select rooms

Mid-Range Staging Costs ($2,000 – $10,000):

Partial professional staging for key areas (living room, kitchen, master bedroom)
Short-term rental of furniture, art, and accessories
Professional photography and lighting enhancements

High-End Staging Costs ($10,000 – $20,000+):

Full home staging, including all rooms and outdoor spaces
High-end furniture and decor rentals for luxury listings
Longer rental periods for staged furniture if the home sits on the market

Staging costs also vary by home size. A small condo may only require $1,500 to stage, while a 4,000-square-foot luxury home might need $20,000 or more to stage properly.

Virtual Staging ($30 – $100 per image) is a cheap alternative for vacant homes. It involves digitally placing furniture in listing photos, which is more affordable than physical staging. However, while it makes photos look appealing, buyers may be disappointed when they walk into an empty space.

A Smart Strategy To Save 100% On Staging Costs

After the NAR’s commission price-fixing settlement, home sellers are more empowered than ever to negotiate the cost of selling. One savvy way to save on staging is to ask your agent if they’re willing to cover it as part of their commission. If they really want your listing, they just might say yes.

In most cases, you’ll still need to pay the staging fee upfront as a safeguard in case the home doesn’t sell. But if it does, your agent can credit the full cost back to you at closing.

Seasoned agents often have strong relationships with stagers and can secure better rates—so it may cost them less than it would cost you anyway. In the end, everyone wins.

Staged Homes Sell Faster

Given that staging often leads to a higher sale price and faster sale, the investment typically pays for itself. But you and your agent must list the home properly in order to get as many potential buyers in as possible.

Homes that sit on the market too long often require price cuts, making staging an essential strategy for maximizing profit. Stale listings is a seller’s worst nightmare. I sold our old home in 2017 unstaged and we only got one offer. Escrow also took 48 stressful days until it closed. It was a huge sigh of relief!

According to NAR, staged homes sell 73% faster than unstaged ones. Why? Because staging creates a sense of urgency. When buyers see a home that’s move-in ready, they’re more likely to make an offer quickly. Just imagine how much more attractive a stage home is if you have a baby on the way.

A staged home also photographs better, which is crucial in today’s digital-first real estate market. More than 90% of buyers start their home search online, and if your listing photos don’t stand out, you’ll lose potential interest before a buyer ever steps foot inside.

Staging Matters Even in a Strong Housing Market

Some sellers think, “The market is hot—I don’t need to stage.” But that’s short-sighted. In any market, buyers are still looking for the best value.

A well-staged home doesn’t just attract more offers; it creates better offers. In competitive situations, buyers are more likely to waive contingencies, increase their bid, or offer cash if they feel emotionally invested.

Even in bidding wars, staging helps maximize final sale price. Buyers making quick decisions based on emotion will stretch their budgets if a home feels “perfect” to them. A staged home minimizes hesitation and increases perceived scarcity.

How to Stage Your Home for Maximum Impact

If you’re convinced staging is worth it, the next step is figuring out the best approach. You don’t always need a professional stager, but there are some key principles to follow:

Declutter and Depersonalize – Remove excess furniture, family photos, and personal items. You want buyers to see themselves in the space, not your life story.
Create Defined Spaces – Every room should have a clear purpose. If you have an extra room, stage it as an office or guest bedroom rather than leaving it empty.
Neutralize the Decor – Bold colors and unique design choices might appeal to you but could turn off buyers. Stick with neutral tones that appeal to the broadest audience.
Maximize Natural Light – Open all curtains, clean windows, and add light fixtures where needed. A bright home feels bigger and more inviting.
Boost Curb Appeal – The first impression starts outside. Fresh mulch, trimmed landscaping, and a clean entryway make a huge difference.
Stage Key Rooms First – If you’re on a budget, focus on the living room, kitchen, and primary bedroom—these are the rooms that influence buyers the most.
Invest in Small Upgrades – Fresh paint, new cabinet hardware, and modern light fixtures are inexpensive ways to elevate the look of a home.

To get a better sense of interior design, I highly recommend you see at least a dozen staged homes in person before staging your own. With experience, you will naturally get a better idea of what looks good, and what looks cheap and out of place.

You Can Push Back Against The Stager Too

If you’re hiring a professional stager, they should have the expertise to make your home look its best. However, don’t hesitate to push back if a furniture arrangement or fixture change doesn’t feel right to you.

For example, our stagers initially placed large stools under our center island, but once we tested it out during lunch, we realized there wasn’t enough space between the stools and the dining table. While they believed the setup was fine, I asked them to adjust it to allow for better flow.

They also suggested removing the two light fixtures over our kitchen sink and capping them for $200 instead of replacing them with matching recessed lights. Their reasoning was that it would open up the space and highlight the views. But since the lights had never bothered us when we bought the home and actually enhanced the kitchen’s functionality, we decided to keep them and save.

While staging can make a home more appealing, it’s important to balance design choices with real-world usability—especially if you’re still living in the home while selling.

Final Thoughts on Staging a Home

As someone who values cost-efficiency, I get why staging can feel like an unnecessary expense. Spending thousands just to help buyers picture a home’s potential—only to return the furniture a month later—can seem wasteful.

But the truth is, staging takes real effort, from movers to designers, and their expertise often helps you sell for more. Most buyers simply don’t have the imagination—especially in expensive cities where few have bought multiple homes.

After our home was staged, my wife and I were completely blown away. And this is coming from someone who has seen hundreds of staged homes and purchased multiple unstaged fixers. My estimate of what our home could sell for jumped by at least $50,000, compared to the $10,000 staging cost, which was covered by my agent. In fact, the transformation was so dramatic that I reconsidered selling altogether! That’s how powerful staging can be.

Selling a home is as much about marketing as it is about property value. Buyers aren’t just looking for square footage, panoramic views, a large lot, or a prime location. Buyers need to feel an emotional connection the moment they step inside, which is what staging helps create.

Given the strong return on investment, skipping staging is probably a costly mistake. If you’re preparing to sell, take the extra step to present your home in the best possible light. Most buyers lack imagination—but with the right staging, they won’t need it.

Would you stage your home before selling? Have you ever bought a home that was staged? I’d love to hear your experiences.

If you want to invest in real estate without the headache of remodeling, check out Fundrise—my favorite private real estate platform. Fundrise focuses on high-quality residential and industrial commercial properties in the Sunbelt, where valuations are lower and yields are higher. With an investment minimum of only $10, I’ve diversified my portfolio by investing over $300,000 in Fundrise. Fundrise is a long-time sponsor of Financial Samurai.

Listen and subscribe to The Financial Samurai podcast on Apple or Spotify. I interview experts in their respective fields and discuss some of the most interesting topics on this site. Your shares, ratings, and reviews are appreciated.

To expedite your journey to financial freedom, join over 60,000 others and subscribe to the free Financial Samurai newsletter. Financial Samurai is among the largest independently-owned personal finance websites, established in 2009. Everything is written based on firsthand experience and expertise. Staging Your Home is a FS original post.

Business

Save More Than 80% on This Adobe Acrobat + Microsoft Office Pro 2021 Bundle

Disclosure: Our goal is to feature products and services that we think you’ll find interesting and useful. If you purchase them, Entrepreneur may get a small share of the revenue from the sale from our commerce partners.

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Why business leaders should pay attention

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Why business leaders should pay attention

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The Most Common Tax Planning Mistakes For High Earners

If my posts on the mistake of chasing value stocks or the need to invest big money to make life-changing money don’t resonate, consider hiring a financial professional to manage your portfolio. You may not be obsessed enough to consistently invest the amount needed to retire comfortably. Offloading the burden of investing frees up your time and energy to focus on work, family, and hobbies.

At this moment, I’m preparing to do my taxes again. Every year I file an extension (Oct 15 deadline) because of delayed K-1s from private fund investments. So when Empower reached out about highlighting tax planning mistakes for high earners, I agreed. It’s a topic I know all too well.

What I didn’t realize is that Empower offers tax planning as part of its standard client service. No extra invoices, no $300/hour CPA bills. Just integrated advice, included in the management fee. Considering that taxes are often the single largest expense for high-income earners, having proactive strategy baked in is a big deal.

The Importance Of Tax Planning For High Income Earners

When you’re a high earner—think $250,000+ income or the potential to get there—you’ve probably got a lot on your plate: investments, real estate, maybe a business or two. What you might not be paying enough attention to? Tax planning.

It’s not sexy like a moonshot AI stock, but the compounding effect of smart, consistent tax moves can rival investment returns over time. As Empower Personal Wealth specialist Scott Hipp, CPA, CFP® explains, for high-income, high-net-worth clients, tax planning isn’t about chasing one-off loopholes, it’s about proactive, coordinated, year-round strategy.

Let’s dive into four key questions Scott answered that reveal just how much value smart tax planning can deliver. If you’re searching for a financial professional to manage your wealth, choosing one that integrates tax planning into their service is essential, not an add-on.

Empower has been a long-time affiliate partner of Financial Samurai, and I personally consulted for Personal Capital (later acquired by Empower) from 2013 to 2015. I’ve seen firsthand how incorporating tax strategy into wealth management can meaningfully boost long-term returns.

1. Why is tax planning critical for high earners?

When you’re in the top federal tax brackets—32%, 35%, or 37%—every strategic move counts more. Saving 1% on taxes for someone making $100K is nice. Saving 1% for someone making $800,000? That’s four first-class tickets to Hawaii with a couple thousand left over.

Scott says most people think of tax planning as a once-a-year scramble or a hunt for magical loopholes (“I heard Uncle Bob pays zero taxes because he made his dogs employees…”). The truth: the biggest gains come from small, consistent, legal moves year after year.

It’s like The Shawshank Redemption: pressure and time. Maxing out a health savings account, backdoor Roth contributions, charitable “bunching,” and tax-loss harvesting may seem minor in isolation, but over 20 years, they can carve a serious tunnel toward financial freedom.

Here’s the danger: by the time you file in April, most opportunities are gone. If you’re filing 2025’s taxes in April 2026, your deadline for most strategies was December 31, 2025. That’s why Empower’s team works year-round—advisors and tax specialists meet regularly to tweak and optimize before the clock runs out.

2. What’s the deal with the SALT deduction changes?

The State and Local Tax (SALT) deduction cap got a temporary boost after the passage of The One Big Beautiful Bill Act on July 4, 2025. It’s $40,000 in 2025 (up from $10,000), rising slightly each year until 2029, before reverting in 2030.

Who benefits? Mostly taxpayers with AGI under $500K in high-tax states. Hit $600K AGI, and the expanded cap phases out completely.

But even high earners over $600K aren’t out of luck—if you own a pass-through business (S-corp, partnership, LLC taxed as such), you might use the Pass-Through Entity Tax (PTET) workaround. Here, the business pays state taxes, making them fully deductible federally, and you get a state tax credit. As of 2025, 35+ states have a PTET option.

For the right clients, SALT changes + PTET can unlock deductions worth tens of thousands—money that stays in your portfolio instead of the IRS’s coffers.

3. How does Empower approach complex high-earner situations?

Let’s say you’re a business owner with significant investment income, passive rental income, and real estate holdings.

With Empower, you basically have a “tax specialist on demand” baked into your fee – no surprise bills. The process starts with:

Reviewing the past three years of returns for missed opportunities. (You’ve got three years to amend and claim a refund.) Empower can spot thousands in overlooked deductions.
Holistic planning based on your goals. Tax strategy isn’t in a vacuum—it’s tied to your investment plan, estate goals, and cash flow needs.

Common missed opportunities for self-employed clients:

Not deducting health insurance premiums.
Missing the Qualified Business Income (QBI) deduction.
Ignoring home office deductions.

More common errors Empower can help catch:

Capital loss carryforwards lost when switching preparers/software
Incorrect Backdoor Roth processing
Missed Foreign Tax Credit
Wrong cost basis for stock sales (ESPP, options)
HSA distributions taxed in error

From there, Empower looks forward—maybe setting up a solo 401(k), timing income, or planning capital gains. The idea is to create an ongoing tax playbook, not just fix past mistakes.

4. What real-world tax savings have clients seen?

Missed health insurance deductions are surprisingly common—and costly.

S-Corp owner: CPA added health insurance premiums to W-2 wages (correctly) but never told the client they could deduct those premiums above the line. Amending three years’ returns saved ~$6,000 in federal taxes.
Sole proprietor: Deducted health insurance as a Schedule A itemized deduction, but couldn’t benefit due to medical expense thresholds and not itemizing at all. Amending saved ~$7,500.
Medicare premiums: Many don’t know they qualify as self-employed health insurance deductions. Catching this can save $1,000+ per year.

These aren’t flashy hedge-fund-like wins—but they’re guaranteed returns via tax savings, often compounding over years.

Key Strategies Empower Uses for High Earners

Scott shared a few proactive moves that come up again and again:

Bunching Charitable Contributions

Standard deduction in 2025: $15,750 (single) / $31,500 (married). By combining two or more years of donations into one tax year, you can exceed the standard deduction, itemize that year, and take the standard deduction the next—resulting in a bigger total deduction over time.

Bonus: Donate appreciated assets or use a Donor-Advised Fund for even more efficiency.

Tax Loss Harvesting

Selling investments at a loss to offset gains elsewhere—then reinvesting in similar (but not “substantially identical”) assets—can lower your current-year tax bill while keeping your portfolio allocated. All Empower Personal Strategy clients ($100K+) minimize your tax burden with proactive application of tax-loss harvesting and tax location.

Roth Conversions

Moving funds from a traditional IRA to a Roth IRA lets you lock in today’s tax rate if you expect to be in a higher bracket later. Future withdrawals? Tax-free. This is especially powerful in lower-income years before RMDs kick in.

Saving Money On A Good CPA

A good CPA might charge $150–$400/hour just for tax consultations. Meanwhile, many don’t offer proactive planning at all, focusing instead on compliance and filing.

Empower builds tax planning into its overall wealth management service for clients with $100K+ in investable assets. That means:

One fee, one integrated plan.
Advisors and tax specialists in the same room (or Zoom) all year.
Proactive calls before the deadlines—not “we’ll see you next April.”

The Bottom Line

Big investment wins get the headlines, but year after year, quiet, boring, proactive tax moves can be worth just as much, sometimes more. For high earners, ignoring tax planning is like leaving compounding on the table.

If you’ve got $100K+ in investable assets, Empower is offering Financial Samurai readers a free consultation. Even if you’re confident in your current plan, a second opinion could uncover thousands in missed opportunities.

For a limited time only, book your free, no obligation session here. An Empower professional will review your investments and net worth, and offer some suggestions on where you can optimize, all for free.

Empower’s Tax Optimization Services

Tax optimized investing (tax loss harvesting, tax location, tax efficiency): available to clients investing $100K+.

Tax planning guidance (analysis and recommendations – identify gaps and opportunities in your tax strategy before you file with your advisor and tax specialist): available to $250K+.

At $1M+, clients receive the above, in addition to access to a CPA, at no additional cost.

Disclosure: This statement is provided by Kansei Incorporated (“Promoter”), which has a referral agreement with Empower Advisory Group, LLC (“EAG”). Learn more here.

To expedite your journey to financial freedom, join over 60,000 others and subscribe to the free Financial Samurai newsletter. Financial Samurai is the leading independently-owned personal finance site today, established in 2009.

Business

How To Eliminate That Intense Financial FOMO You’re Feeling

Back in 2012, I thought I had finally conquered financial FOMO after walking away from a well-paying finance job. But after having children, I’ve noticed more and more relapses. If you’ve found yourself battling the desire for more money than you truly need, this post is for you.

Ever since returning to San Francisco from our 36-day trip to Honolulu, I’ve been feeling a greater sense of FOMO. The first week back hit especially hard when Figma IPOed and surged 333% on its first day. Suddenly, we were right back to frenzied markets, with retail investors piling in at sky-high prices.

In Honolulu, my focus was on mainly three things: 1) family, 2) exercise, and 3) remodeling my parents’ in-law unit. Those three priorities consumed all my bandwidth. Between supercommuting and construction, I was spent most days, with little time left to think about chasing investments.

Pickleball and then the beach were my escape. While waiting for the next game, conversations revolved around recapping rallies, kids, or which store sold the best Pirie mangoes. Careers and investments never came up, except when I asked a couple players about Honolulu’s cost of living. The vibe was refreshingly present, grounded, and calm.

The Return Back Was Somewhat Jolting

I had never taken my family on such a long trip before, so the contrast with life back home was especially clear.

With just the four of us at home, family logistics became simpler, familiar camps smoothed out childcare every other week, and the remodeling burden was finally lifted. With all that mental headspace freed up, my mind inevitably drifted back to the markets and to the unsettling realization that the AI boom was racing ahead without me.

On the pickleball courts here, the chatter couldn’t have been more different. Nearly everyone was talking about tech stocks, the bull market, and the next big AI play. Why? Because nearly everyone either works in tech or invests heavily in it. There was no escaping the mania. I found myself longing for the calmer rhythm of Honolulu again.

The Moment That Reduced My FOMO Tremendously

Then something unexpected happened that broke my financial FOMO fever. The first weekend back home, I went to a neighborhood gathering at a local park. Familiar faces were everywhere, including one dad I occasionally hang out with. He works in venture, so I asked whether he ever felt the same financial FOMO I’d been struggling with since returning.

He shrugged. “Kinda, but not really.” Why would he? He spends his days looking for the next big winner, so opportunities are always flowing across his desk. Though he did mention once passing on a company that went on to be a huge success.

That surprised me. If anyone should feel FOMO, it’s investors who had the chance and said no, far worse than never getting a look at all, which is the reality for most of us. If I never had the opportunity, then there was no missing out in the first place. But it also made sense he didn’t feel much financial FOMO since he was already immersed in the hunt for more.

We kept chatting. He asked how my summer had been, so I shared some stories from our time away. Naturally, I asked about his summer too, expecting to hear about some big trip since his family had traveled a lot before. But instead, he told me they hadn’t gone anywhere. He’d been too busy working. Two months into summer, and he was still grinding away.

That was my “ah hah” moment. Suddenly, my financial FOMO evaporated. Here was someone, at least twice as wealthy as me, stuck at home because of work. It reminded me of my banking days, when I had to ask for permission to take vacation—like a kid asking his parents for pocket money. What a crock!

I’m sure his hard work this summer will make him millions more. But he’s already rich. At our age, I don’t want to sacrifice too much time with my kids for incremental wealth that won’t materially change our lifestyle. 18 summers isn’t a lot. I’ve got enough passive income to cover our family’s basic needs. That freedom, I was reminded, is worth more than chasing the next big score.

The Six Steps To Reducing Your Intense FOMO

Financial FOMO comes from comparison, insecurity about our own progress, and the fear of missing a once-in-a-lifetime opportunity. It tends to peak during bull markets, when it feels like everyone else is getting rich except you.

I’m not sure anybody is truly immune to financial FOMO. You can be wealthy, financially independent, retired, or even work in venture capital, and still feel it. But FOMO left unchecked can push you into bad investment decisions, such as buying at peaks, overextending on margin, or constantly second-guessing yourself.

Here are six tactical yet practical steps that may help you manage FOMO better:

1) Build a Core Portfolio You Rarely Touch

One of the best ways to combat FOMO is to remind yourself that you already own a piece of the future. If you’re invested in equities, real estate, Bitcoin, or venture, you’re covered. Even holding something as simple as the S&P 500 means you’re participating in the ongoing growth of our economy. The exact mix of your asset allocation is up to you. What matters most is having a stake in assets that can carry you forward, so you don’t feel pressured to chase every hot new opportunity.

I keep the bulk of my public equity investments in broad index funds. Meanwhile, about 40% of my net worth in real estate, and 15% in private companies.With a solid core, it becomes much easier to tune out the noise and ignore the hype cycles.

For example, if AI truly sparks a wave of IPOs, new startups, and thousands of newly minted millionaires, at least my San Francisco real estate should benefit. I recently experienced a rental bidding war for one of my properties and that’s before the AI IPO wave has even arrived. Investing in the picks and shovels helps ensure you will financially benefit, no matter what.

2) Allocate a “FOMO Fund”

Instead of trying to suppress the urge to participate, give yourself permission, but with guardrails. Roughly 40% of my public equities are in individual growth names, mostly tech. This way, when I see headlines about breakthroughs, like quantum computing, I feel like I’m part of the story rather than left on the sidelines. Of course, during the next correction, I will also lose more than the average index fund investor too.

I’ve also carved out a dedicated “FOMO Fund”—about 5% of my overall portfolio—for speculative money. That’s where I can dabble in individual private companies, new venture funds, or even short-term trends. If it pays off, great. If not, it won’t derail my financial plan. By containing the risk, you scratch the itch while protecting your long-term wealth.

3) Systematize Your Investing With Automation

One reason FOMO hits so hard is because investing often feels optional and emotional. A simple antidote: automation. Dollar-cost averaging into index funds, ETFs, individual stocks, or funds removes the decision-making stress. When money flows into the market on a schedule, you don’t sit around debating whether to chase the next hot stock. Instead, you’re already steadily invested, no matter what the headlines say.

For example, after opening a new personal Innovation Fund account earmarked for my kids with $26,000 ($500 bonus if you invest over $25,000), I enrolled in auto-invest at $2,500 a month. It’s enough out of my cash flow to feel involved without feeling strain. One year later, that’s $30,000 invested; after 10 years, $300,000.

Without automation, it’s easy to fall off track because life gets busy. I have over 30 investment accounts to manage between the four of us. Inevitably, I’m going to miss something, which is why automation is so important to free up mental bandwidth.

I’m concerned my kids may have little chance of becoming financially independent on their own in an AI-driven, hyper-competitive world. Therefore, every dollar I automate for them helps reduce that concern, while ensuring their money is working even if I get distracted.

Make investment contributions automatic through monthly auto-investing to help you reduce financial FOMO

4) Use Opportunity Cost as a Filter

Before jumping on the next hot idea, I try to ask: What am I giving up if I do this? Am I sacrificing cash flow, peace of mind, or time with family? Am I risking capital I’ll need in five years for housing, education, or flexibility? During bear markets, I certainly get a little more moody. By forcing yourself to weigh trade-offs, you realize some FOMO-driven decisions don’t actually pass the test. I

As someone who enjoys investing more than spending, this opportunity cost exercise often flips for me. I tend to think instead: What is the opportunity cost of spending money on something I don’t really need versus the potential returns if I invested it? Buying this unnecessary $120,000 Range Rover could turn into $300,000 in five years if invested well!

Still, the reality is that not all investments work out, especially the most speculative ones. Corrections and bear markets are a natural part of investing. Which is why it’s worth asking a different version of the question too: What are the joys I’m giving up today in exchange for an investment that may never pan out? That balance helps keep you grounded, whether you lean toward spending or investing.

Losing Money Quickly

Just look at the Figma IPO. I suspect FOMO drove many investors to pile in on day one, paying $100–$133 a share. Fast forward just a few weeks, and the stock is already down about 40% from its peak. I would much rather have spent $25,000 on a memorable family vacation than invested it in Figma and watched $10,000 vanish in two weeks. YOLO!

Chasing hot IPOs at extraordinary valuations is dangerous, so please be careful. Instead, consider investing in these companies before they go IPO so you can sell to investors who experience maximum FOMO.

Always remind yourself that you can and will lose money when it comes to investing in risk assets. Sometimes, this fact is easy to forget during a bull market.

How to reduce financial FOMO and not chase hot IPO stocks like Figma

5) Define “Enough” Clearly

FOMO often creeps in when you don’t have a clear baseline for what success actually means to you. If your target is always a vague “more,” then no matter how much progress you make, someone else will always appear to be ahead – whether it’s their bigger house, higher net worth, or latest hot investment. That mindset makes contentment impossible.

What helps is defining enough. For me, that’s when passive income reliably covers our family’s basic living expenses. Once that box is checked, every dollar beyond is truly optional. I can put it toward growth investments, donate it, or try to spend it guilt-free on experiences.

After I hit a passive income target, I try and shift my mindset back toward an early retirement lifestyle. This means less striving, more enjoying. Anchoring to “enough” quiets the noise, and reminds me that I’ve already got enough.

Once you know your number and can sustain your lifestyle, you realize chasing endlessly isn’t freedom, it’s another form of bondage.

6) Change Your Environment

Finally, FOMO isn’t just about the markets, it’s about the people around you. Living in go-getter cities like San Francisco or New York means you’re constantly surrounded by the most ambitious and competitive people. Many of whom are making big money in tech, finance, or startups. The conversations, the headlines, even the birthday gatherings, it all feeds into a sense that you’re in this constant battle where you’re often falling behind.

One way to dial that back is to physically change your environment. Moving to, or even spending extended time in, a slower-paced city or town gives you space to breathe. Suddenly, not everyone is talking about the latest IPO or AI fundraise. Conversations shift to family, community, or quality of life.

It doesn’t mean giving up ambition or opportunity, you can still build wealth anywhere. But by lowering the ambient noise of competition, you reduce the constant comparison game that fuels financial FOMO.

Final Thoughts On Getting Rid Of FOMO

Markets will always swing from euphoria to despair, and there will always be someone making more money than you. But with a sound core portfolio, a small space to take punts, and a clear definition of enough, you can stay disciplined while still scratching the investing itch.

FOMO doesn’t disappear, but with the right systems, it can be managed so it doesn’t manage you.

Readers, do you experience financial FOMO? If not, how do you manage it so you don’t feel like you’re constantly missing out on financial gains? Interestingly, the vast majority of people I speak with in real life say they don’t really struggle with financial FOMO. That makes me curious — what strategies do you use to tame this beast?

Invest in AI So You Don’t Get Left Behind

AI is set to disrupt the labor market in a massive way, for you and for your kids. One way to hedge against that disruption is to invest in AI itself.

With Fundrise’s venture capital product, you can gain exposure to leading private AI companies like OpenAI, Anthropic, Databricks, Anduril, and more. The minimum investment is just $10, and new accounts currently get a $100–$200 bonus.

I recently opened a new account for my children with $26,000 and will auto-invest $2,500 a month for the foreseeable future. My hope is that by riding the AI wave, they’ll benefit from the very disruption that might otherwise work against them.

Fundrise is a long-time sponsor of Financial Samurai, and Financial Samurai is an investor in Fundrise products. Our investment philosophies are aligned. Overall, I’ve invested more than $350,000 in Fundrise Venture.

Fundrise Innovation Fund Financial Samurai investment amount and dashboard - Overcoming FOMO in AI by investing in AI — My current Fundrise Venture investment dashboard, excluding the $26,000 I recently invested for my children

Pick up a copy of my USA TODAY national bestseller, Millionaire Milestones: Simple Steps to Seven Figures. I’ve distilled over 30 years of financial experience to help you build more wealth than 94% of the population and break free sooner. When you’re ahead, that FOMO starts to disappear.