The credit card is far too easy to use on YOLO purchases!

Some people, when making big purchases, justify it with the idea that “you only live once” (YOLO). Too much of this can hurt savings, lead to stress and, in many cases, a poorer quality of life. It can also spiral out of control. But there is a way to embrace some of these YOLO purchases AND keep your savings thriving. This is what we will explore.

Misuse of a Saying

I’m just going to start with a mini-rant here. Why not right? One thing that used to bother me in teaching was this concept of teachers practicing “self care”. It seemed that the powers that be, whoever they are, noticed that teacher longevity statistics were tanking.

They were and are.

Then, it feels like they decided it must be stress that was causing teachers to burn out.

It was. Stress is what got me at least.

Self Care is not just a phrase to be bandied about!

So, as a result they started pushing this concept of “self care” for teachers. It makes sense. However, the part that irks me is this: It felt like these “higher ups” thought they could just push out a few articles on “self care” and have administrators say the words “self care” from time to time and all would be well.

As is the case with many things, they were not addressing the myriad sources of stress that teachers face daily. Teachers, in my opinion, are stretched way too thin. As a result I ended up wanting to scream “I don’t have time for self care!” whenever I heard it. Am I alone on this one?

Mini-rant over. I may explore this later though…

For now, however, the reason I went on that preemptive tangent is because it reminds me so much of the YOLO phenomenon. Just like administrators saying “self care” was thought to be enough, it feels like when rationalizing a rash, and somewhat substantial purchase, a person needs only to yell “YOLO!” and it is instantly justified.

As you may imagine, spending significantly on rash purchases can have a deleterious effect on your savings.

And YRTL (You’ll Regret This Later) doesn’t quite have the same catchiness (though not the worst either).

But the reality is, if you “YOLO purchase” frequently, you’re most likely going to be hampered by debt. Debt is inherently stressful. We want to avoid debt. Stress from debt will easily counteract any short-term benefits you may feel from a “fun” purchase. In most cases, these “YOLO purchases” are ill-advised.

But is there a balance? Can I “YOLO purchase” a little and still keep my long term financial goals intact?

I think so. Let’s explore!

Taking YOLO back

Sometimes a phrase gets overused and so disfigured that it loses all of it’s original intended value.

You Only Live Once (YOLO) is one such quote. As far as I know, you do only live once. And taking it a step further, it certainly makes sense to me to make the most of the time we have while we have it. That saying is even worth revisiting when we get caught up in things that don’t really matter in life.

Let’s restore the original intent for the saying.

You can even connect it to taking healthy risks that challenge you as a person. For my money, that’s a good saying.

But for my money, it’s a bad saying.

I just don’t like the idea of connecting that phrase to purchases. When we do that we are saying that the items we purchase will bring us happiness and we’ll regret it later if we don’t buy them. I believe, by and large, the EXACT OPPOSITE to be true.

Purchasing things will NOT bring us happiness and we’ll regret it later if we DO buy them.

In a previous post, Don’t Let Buyer’s Remorse Eat Away at Your Savings, we saw that the majority of us feel remorse for most of the purchases we make. Remorse and regret are synonymous to me. And most likely, that regret comes when you see that credit card statement…

Avoid going deeper into stressful, burdensome debt!

Debt in all forms equates to some degree of stress. For me, I’m going to be much happier without the debt than I am with the shiny new toy. And when that toy loses its shine, I’ll probably wish I could just have that money back.

This is obviously not true for all cases. But that’s why it’s so important to be intentional about purchases rather than rash. It can be a very slippery slope indeed.

The Slippery Slope

If someone does a lot of YOLO purchases, unless they are wealthy, there is a good chance that they will be in debt. At the very least, they’re probably not saving a whole lot.

But for our purposes, and given the trends we see for the average American, they are probably in debt.

As we’ve already mentioned, debt is inherently stressful. Usually, a person in this state of mind will try to relieve said stress. So what do they do? Make more purchases of course! There, in lies, the slippery slope.

YOLO purchases to relieve debt stress is a slippery slope!

They are taking the short-term relief with the purchase which only compounds their problem later. And that just leads to even more stress down the line.

If this describes you at some point or even now, don’t worry. It described me too. If you’re reading this than you are actively trying to combat it as I am as well.

If we stick to it, and play our cards right, it can and will be combatted!

Just don’t play the YOLO card. We see that that won’t get us where we want to go.

But let’s look at how we can still have a little YOLO in our lives without crushing our savings.

YOLO Purchases = Spontaneity

To me their is a significant element of spontaneity associated with YOLO. You’re driving by a fancy car dealership. You lock eyes with your significant other. The outdated, haggard car you are currently driving practically drives itself into the dealership and… YOLO!

But we won’t operate that way with major purchases. That will hurt too much later.

Don’t let these big YOLO purchases flatten your savings!

Nevertheless, nobody will blame you for wanting a little spontaneity in your life.

One of the recurring themes I heard in my FIRE (Financial Independence Retire Early. Here‘s a post I made on it.) deep dive was the idea that those folks that were seeking FIRE had fixated so hard on the end result that they forgot to enjoy the ride.

Then, once they achieved FIRE, there was a “now what” feeling that was woven throughout their stories…

So, how can we smell some roses, have a little spontaneity AND avoid regrettable purchases that will smother our long term goals?

Have a YOLOWANCE (YOLO Allowance)

Even I’m groaning on that one. I’m starting to see where my students were coming from…

But put the horrible headline aside for a moment. Can you have a fixed amount of money, that you set aside per month, to spend on whatever strikes your fancy?

Then, once that money for your, ahem, YOLOWANCE, dries up you shut it down for the rest of the month. Almost like a robot. You are programmed to spend spontaneously to a certain limit, then stop.

Whatever you choose to call it, a budget can be a great way to spend a little now and still save!

“Wait a minute,” you say suspiciously, “this sounds an awful lot like a budget.”

To which I reply, yeah, it pretty much is. But if I had written “budget” you’d never have YOLOWANCE (last time) enter into your life. You’re welcome.

Budget might be one of the least spontaneous words there is, but if you budget in these YOLO purchases, you can make them without regret. This can bring a little spontaneity into your life. It can also help stave off some of the perceived drudgery and grind associated with saving. All the while, it still provides you with the peace of mind that you’re on the right track to achieve your long-term financial goals.

And if we are budgeting some YOLO purchases, then it makes perfect sense that the less we spend on any given purchase allows for more purchases later.

I have a list of go-to YOLO purchases that I like to make when I’m out and about. I’ll put it below. But I’d also like to hear your ideas as well! Let me know in the comments and we’ll add to the list.

My Favorite Low-Cost YOLO Purchases

Before I give you the list, just make sure you have some system to track your spontaneous spending and you’ve set aside a reasonable amount for it as well.

I usually set aside about $50 per month for YOLO purchases. If I keep it to $12 per weekend, it’s easy for me to track. And with $12 I can get plenty, but here are some of my favorites!

Give me a nice coffee and a book and I’m as content as can be!

Ice Cream – I can have a delicious treat and spring for my wife and kid as well.

Nice Coffee – Give me a coffee and a book and I’ll never complain.

Bakery Goods – Add a croissant to that coffee/book equation and you may never see me again.

Pizza – I can’t shake it so I just have to moderate it. I absolutely love pizza. In fact, on my second post I talked about taking a pizza making course in Italy, as one of my long-term goals for myself. For now, a few slices from the pizzeria downtown will have to suffice.

Take in a matinee at the movie theater – As long as you avoid the expensive snacks and sodas, a movie can be a great take on a budget.

Modified Picnic – If I bring a few supplies from home and buy a sandwich from a local deli, I can have a lovely picnic on a tight budget.

Brewery Sampler – It’s hard to throw a stone these days without hitting a local brewery. We have plenty in the area. One thing I like to do is try a new brewery and buy a sampler of some of their beers. If I don’t get to all the beers in that visit, I can always go back later.

Activities – There are many activities I enjoy like mini-golf, bowling, pinball, or pool that cost very little and are good for hours of good fun.

That’s all I’ve got! Clearly that needs more. Also, it’s pretty apparent that I need to make some healthier choices.

What do you do for a little spontaneity that doesn’t hurt the savings? Tell me about it in the comments and we’ll get a list of ideas going.

It should also be noted that are plenty of free activities as well, but that wasn’t the goal of this post. We just want to spend a little and stil keep the majority of our money saved. Spending that little amount of money spontaneously may also help us avoid those large YOLO purchases that can destroy our saving momentum.

Summary

Take YOLO back and make it about living a full life without regret. But disassociate the saying from purchases.

If you want to be spontaneous, you can budget in small spontaneous purchases without losing track of your long-term goals.

That way you can still spice up the “now” and keep your money for “later”. In the end, as is usually the case, it’s about finding balance.

Thank you for reading! If you have any comments or questions you are welcome to put them in the comments below. If you have any suggestions for ways to spend a little without breaking the bank, I’d love to hear those too. You can also feel free to reach out by contacting me.