YOLO or Save First, Spend Later?

Vinod Choudhary
6 hours ago
3 min read

Life is full of choices, and one of the most significant decisions you'll make is how to balance living in the moment and planning for the future. Should you embrace the "YOLO" (You Only Live Once) mindset and spend freely, or should you plan your finances well to ensure a secure future? In this blog, we'll explore the pros and cons of both approaches and help you make an informed decision. Let's dive in!

Living Life to the Fullest: The YOLO Mindset

Pros:

Immediate Gratification: Living in the moment allows you to enjoy experiences and purchases right away.
Achieving Dreams: You can fulfill your wishes, whether it's buying a dream car, traveling the world, or owning the latest gadgets.
Social Approval: You might look cool among your friends and gain social approval for your lifestyle.

Cons:

Financial Strain: Spending impulsively can lead to financial strain, leaving you with less money for essential expenses.
Future Uncertainty: Without proper financial planning, you may face difficulties in the future, such as paying for emergencies or saving for retirement.
Maintenance Costs: Owning things like a car, bike, or home comes with ongoing maintenance costs, which can be expensive.

Real-Life Example: Imagine you decide to buy a high-end super car on impulse on EMIs. While you enjoy the thrill of owning and driving it, you soon realize that the maintenance costs, insurance, and fuel expenses are much higher than you anticipated. This can put a significant strain on your budget and affect your ability to save for other expense in the future.

Keeping It Low: Planning for the Future

Pros:

Financial Stability: Planning your finances well ensures that you have enough money for both current expenses and future goals.
Emergency Preparedness: Having a financial cushion allows you to handle unexpected expenses without going into debt.
Long-Term Goals: You can save and invest for long-term goals like buying a home, starting a business, or retiring comfortably.

Cons:

Delayed Gratification: Planning for the future often means delaying immediate gratification and making sacrifices.
Missed Opportunities: You might miss out on experiences or purchases that you could enjoy right now.
Social Pressure: There might be social pressure to keep up with friends who are living a more extravagant lifestyle.

Real-Life Example: Imagine you decide to save and invest a portion of your income each month. While you might not be able to afford a high-end super car right away, you build a financial cushion that allows you to handle emergencies, save for a home, invest for retirement and also save enough for buying a super car. This approach ensures long-term financial stability and security.

Finding the Balance

Strategies to Balance Living in the Moment and Planning for the Future:

Create a Budget: Allocate a portion of your income for savings and investments, while also setting aside money for enjoyable experiences and purchases.
Prioritize Goals: Identify your short-term and long-term financial goals and prioritize them accordingly.
Save First, Spend Later: Make saving and investing a habit before spending on non-essential items.
Invest Wisely: Choose investment options that align with your risk tolerance and financial goals, such as mutual funds, stocks, or real estate. Mutual funds can help you achieve your goals, and when it comes to investing, you know where to look—Miles Wealth.
Review and Adjust: Regularly review your financial plan and make adjustments as needed to stay on track.

A Thought to Ponder

Would you rather live in the moment and risk financial strain, or plan for the future and enjoy long-term financial stability?

Conclusion

Living life to the fullest and planning for the future are not mutually exclusive. By finding the right balance, you can enjoy the present while also securing your financial future. Create a budget, prioritize your goals, save first, invest wisely, and regularly review your financial plan. This approach will help you achieve a fulfilling life today while ensuring a secure tomorrow. Take the first step towards balancing your financial priorities today and secure your future.

Disclaimer: This blog is for educational purposes only. The securities/investments mentioned here are not recommendations.

P.S. If mutual funds are on your mind, check out Miles Wealth! We make investing easy with personalised mutual funds tailored to your risk tolerance and financial goals. No need to be a finance expert or spend hours researching—just invest in funds that truly fit you. Download Miles Wealth today!