The attitude of YOLO is one we see a lot in members of the younger generations. A “you only live once” attitude is one that has some benefits in creative expression, gathering experience of life’s joys and adventures. However, when it comes to finance, this ethos can lead to challenges that can compromise greater dreams. This is where Jason Vitug, in his book You Only Live Once, warns us and our younger people to embrace the attitude but control your finances and invest in your future.
In his roadmap, Vitug outlines some simple rules to follow for mindful management of finances as opposed to mindless spending:
- Spend less than you earn: pretty straightforward rule for avoid needless debt on unimportant consumer goods.
- Pay less for every purchase: bulk purchasing, asking for discounts, bargain, and investigate service fees.
- Buy what your love, not what you like: where is the priority of your spending? “Love is greater than need is greater than want is greater than like.” Think about that when decided to spend money, if you don’t love it or need it is it worth it?
- Use credit for purposeful purchases. Practice financial control and use credit for “long-lasting assets with short-term financing.” Not all debt is bad, but paying interest on items beyond their useful life is a waste.
“Eliminating debt doesn’t just improve your financial life; it improves your entire life.”
The key message is that happiness doesn’t come from possessions, but living a fulfilling life. A financial adviser can help you use the Vitug roadmap in You Only Live Once by looking at your cashflow, analysing your position, leveraging the magic of compound interested so your one life is the best life. Talk to us today to get started.
Image thanks: getabstract.com
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Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
