I’ve been thinking lately about the period of my life when my finances started on a downward spiral. It wasn’t long after my 18th birthday and when I was first introduced to credit. And it all started with a defining YOLO (You Only Live Once) purchase…
It wasn’t even a massive purchase in the grand scheme of things but it was the catalyst for the financially irresponsible way I began to live my life for many years afterwards. I remember it like it was yesterday.
Back when I was 18, I was earning a very small wage and living at home with my parents. I was in college and working as an apprentice at the same time, doing office work. For the first time in my life, I was earning money. Depsite my small wage, I actually felt like I had a lot of money. I had to pay my parents some board and I had my own telephone lined installed at home (independence and all that!) but that was all I had to pay for.
I found the nightlife scene in my local town really exciting at that age and so I was out all the time with my friends. I used the rest of my income to fund my social life. I saw my friends getting new clothes, shoes and bags and I couldn’t help but want to do the same. My new social life was fun!
My friends and I used to spend most Saturdays shopping, before a big night out in the evening. I had decided in my head that I was going to buy a complete outfit for the evening because I wanted to look the part. The only thing was that I couldn’t afford to pay cash as I needed money for going out, so I took along a store card that I’d recently signed up for.
I went ahead and purchased a dress, matching bag and matching shoes – on credit, totalling £70. It equated to a quarter of my monthly income. I wasn’t worried, because I was more interested in satisfying my desire to look great for the evening. Buying the outfit made me feel happy.
Funnily enough, the friend I went shopping with that day couldn’t believe that I was paying for this purchase on credit. She was the only one out of my friends who didn’t have a credit card. She even warned me not to use credit, saying I’d regret it later!
The truth is that I didn’t regret that purchase until several years later, when I realised how my spending habits and YOLO mindset were affecting my life. After that purchase, I had many YOLO moments, where I spent much more money that I didn’t have on fashion, going out and later in life when I moved out, on holidays and home improvements. Even really boring ones like double glazing! (Now that WAS an expensive impulsive buy.)
The impact of the YOLO mindset on my life
By the time I realised the damage that I’d caused to my finances by living a YOLO lifestyle, I was in my late twenties and had racked up a lot of debt. To make things worse, my husband also had a lot of debt, because of similar reasons.
Together, we both owed thousands and thousands of pounds to creditors. Even though we began cutting back and stopping spending, the damage was already done. When my husband lost his job, we ended up in even more debt – caused by trying to survive, not mindless spending – and things began to spiral out of control.
Our combined credit card and loan debt reached a huge £41K ($65K) before we reached rock bottom. You can read more about our debt story and progress here.
The rise of YOLO living
I know I’m not the only one that’s lived for the moment when it comes to spending money. According to research done by the Money Advice Service, in Britain alone, more than five million YOLO purchases are made every day, amounting to £167 million in spending. What’s more, one in four of those purchases are made on credit.
One of the problems with YOLO spending, other than the major one of potential debt and financial difficulty is the regret that often comes with these purchases. One in eight people in Britain feel regret after making a YOLO purchase and one in five people later promise themselves never to do it again. I can understand this because the fun of YOLO spending inevitably wears off.
Even with many Brits feeling regret about their YOLO purchases, four in ten people agreed that “there’s no point worrying about the future because you only live once”.
Can you relate to YOLO spending?
If you’re reading this post and these stats and recognising that you might be living the YOLO lifestyle, there are steps you can take now to limit the financial trouble you could find yourself in later in life (or now even). You’ve already taken the first step in realising that you need to change the way you spend money.
Budgeting might sound boring, but it’s important. We all like to be able to buy nice things – there’s nothing wrong with that. But the best way to make sure you don’t get into trouble over your spending is to ensure you have accounted for a purchase by planning for it and saving the amount needed first.
Another way you can avoid YOLO spending is to simply avoid the shops. When you do need to go shopping, take cash with you and only the amount you need. Make a list and do what you can not to deviate from that list!
If you typically spend online, think about what usually leads you to browse retail websites and whether there is a pattern to it. E.g. if you end up spending money in your lunch break because you sit at your desk and shop over the internet, change what you do. Go out for a walk instead and eat your lunch somewhere else. Find the trigger and try to change the pattern.
Finally, December is the month where the temptation to “spend today, worry tomorrow” is even more prominent than usual. It’s so easy to get carried away with Christmas shopping. But before you spend though, think ahead to January and beyond. Would the financial hangover be worth it?
I’d love to read your thoughts on this subject. Tell me about your YOLO experiences in the comments below!
By subscribing, you'll receive new blog updates by email and occasionally I might email you with any exciting news. I promise not to spam you and your details will never be passed on.
14 Comments
I got broke the old-fashioned way: not being able to work. So I didn’t get a lot of YOLO moments. There were a few times that I spent because I’m bipolar and I was cycling manic. But by and large, our spending stays pretty boring. If anything, my husband has gotten me to better accept the occasional YOLO purchase. Though I’m not sure if it’s YOLO when it’s budgeted for.
Abigail @ipickuppennies recently posted…When discount GCs bite you in the ass
That has to be one of the worst ways Abigail, because it was out of your control. I think budgeting for those purchases is the best way to go – not YOLO and that’s a good thing. 🙂
This is amazing because I had the YOLO money spending mindset when I was younger also. Spending my savings on drinks, latest clothing trends that didn’t last long, and hanging out at the coolest spots just because I wanted to enjoy my life. It is so different now and I spend today and worry today!
Jen recently posted…3 Simple Budget Tools to Help Buy Your First House
Hindsight is such a great thing isn’t Jen! Looking back, I cringe when I think about how much I spent on socialising and all that goes with it!
I cringe all the time thinking back about my spending habits like buying a shirt in two colors! -_-
Jen recently posted…How The Rise In The Fed Interest Rate Affects Your Debt
I can relate to YOLO spending. YOLO is really good but not in spending because I most of the time regret my purchase, which I really hate, Hayley.
I’ve had so many I could write a book. I’m trying to be so much better about each and every purchase I make now, asking myself why I really want to buy it. I think if I had done that even a fraction of time in the past, I would be so much better off than I am today.
Tonya@Budget and the Beach recently posted…15 Traits of a Strong Woman
In a lot of ways, your story sounds very familiar. I never bought a boat, or a designer wardrobe, or a fancy car. I just bought/paid for things I wanted without thinking about the consequences. When I was young, I lived in expensive cities (Boston and NYC), and went out to eat and drink a lot. Again, not the most glitzy restaurants in town, but I went out quite a bit. New clothes on a regular basis? Why not? Unfortunately, I lived like this for all of my 20s, and even into my 30s. Ouch.
Amy @ DebtGal recently posted…2015 Meal Plan #49
While I’m “old enough to know better”, I still find there are occasionally times when I give in to YOLO spending, mostly when it has to do with vacations. Usually it’s a case of overspending my budget by a bit, and then reining back the spending until I’ve balanced it back out again, even if it wasn’t a large amount to begin with. I think the biggest danger comes when small expenditures start to pile up, and credit card debt becomes a habit.
Gary @ Super Saving Tips recently posted…15 Money Movies That Make Great Last Minute Gifts
I’ve done my share of YOLO spending, especially in my 20s.
Now I do it for my kid and experiences. You know, “She’ll only be the right age to enjoy it for just a little time.” Like, I’m pretty sure we’ll do Disneyworld next year or the year after, even though it’s over $100 per day per person just for the park.
I think a lot of parents (especially older ones like me who have only one child) fall into this trap. I guess the key for us is remembering the difference between giving your kid a childhood experience, and going for every bell and whistle the experience involves.
Emily @ JohnJaneDoe recently posted…Little Bit and her Giveaway Jar: Teaching a 5 Year Old to Give
I completely YOLO’d grad school. I decided on a whim and rationalized it with “how many opportunities are you really going to have to live in England” and before I knew it I had wiped out my savings, was $30,000 in debt and on an airplane.
Great point, understanding why your live the YOLO lifestyle and what it’s triggers are is important. You do only live once, don’t do it in debt.
Liz recently posted…Rock Your Finances in 2016 Free E-Mail Course
It’s fun to do YOLO spending once in a while. I do this because I deserve this for having done a job well done. But, I never forget about control because I don’t want to do mindless spending and put myself in debt, so that I will have another round of YOLO spending.
I never thought of it like that. This is going to make me think of how many times I purchase things on a YOLO mind-set. Thank you for sharing your story.