The ‘no regrets’ or #YOLO (you only live once) attitude of the millennial generation may be wreaking havoc on bank balances and eating into much-needed savings.
Want to go to backpacking around South America for six months? YOLO. No savings? YOLO.
The mantra has now become more of an excuse to get what you want than a positive lifestyle choice, says financial coach Rebecca Pritchard from Wealth Enhancers.
“When it comes to finances, YOLO is about living beyond your means… So, we’re actually spending more than we earn,” Pritchard told Your Money Live.
That’s because it’s easier than ever to fuel this kind of lifestyle thanks to credit cards, personal loans and by frequently drying up the savings account.
“Millennials and the Gen-Xs, we work really hard. Work is a huge part of our lifestyle now. And it’s a bit of the ‘I deserve it’ effect.”
But while ‘living in the now’ is a great theme on Instagram, has it become detrimental to our financial futures?
“When you think about the environment that we’re in now it’s all about instant gratification… It’s just really easy to spend and delay the problem, make it future Rebecca’s problem,” says Pritchard.
“The flip side of YOLO is financially you only live once. So, if you spend all your money right now… you’re not going to have that money later. So, we do need to strike that balance.”
Instead, she says the key to having a fuller, more enjoyable life is to stop making spontaneous decisions and set some lifestyle and financial goals.
“It’s not just about saving, it’s about thinking about what opportunities I’d like to create for myself in the future. Because I don’t want to get to that future and think, oh my goodness, I’ve got $2 in the bank.”
Her advice is to think about the current lifestyle elements that you really enjoy and don’t want to negotiate on, whether that be travel, food or concerts.
“Step two is to stop all the other crap and focus on that good stuff. So if you want to go to Taylor Swift every time she comes to Australia, or it’s important to go on that Yoga retreat in Bali, make sure you embed it in your finances and actually do it,” she says.
“The flip side to this is compromising to say if you’re going to do those things then maybe you don’t need Stan and Netflix and Foxtel and Amazon Prime. We need to make some tradeoffs along the way.”
Watch the full interview in the video above.
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