If you’re like many millennials, you probably suffer from a severe case of FOMO (fear of missing out) because, well … everybody knows YOLO (you only live once). As a result, you might treat yourself to expensive trips, or nights on the town, because you don’t want to be left at home while the best years of your life pass you by.
Unfortunately, your best years will, in fact, pass you by. If you have not taken the time to properly protect your finances, you will find yourself among the roughly 75% of Americans living paycheck-to-paycheck, or even the 27% who have no savings whatsoever.
Zoe Dawkins, a 28-year-old communication specialist, found herself in that situation.
“I really value the idea of ‘happiness now’, so I spend a lot of my money on travel, entertainment, and gifts,” Dawkins told USA Today. Of course, that mentality leads to some problems. “There have been times when debt has mounted up, or I wasn’t able to bail myself out when a medical crisis hit.”
In order to protect herself, she devised a plan to protect both her financial future and her YOLO sensibilities. We’ve boiled her philosophy into three easy steps anyone can take to keep their YOLO from becoming “oh-no!”
Save For Emergencies
One of the biggest mistakes you can make with saving is not having a dedicated stockpile of cash for emergencies. Whether it is medical or mechanical, the cost of an emergency can take you out of the game for a lot longer than the emergency itself.
“If your car breaks and you suddenly need $3000 or $4000, you’re not going to be able to take those road trips you planned,” Says Russell Robertson, owner of ATI Walther Partners and certified financial planner.
Turn Your FOMO to the Future
If your fear of missing out is causing stress for both you and your finances, try shifting your attention slightly forward into the future. If you want to make sure you have the ability to take part in something awesome should it come up in the future, then you’ll want to be sure you that you have the resources set aside to do so.
Forgive Yourself
One of the most important things to any financial plan is being open to missteps and mistakes. Mistakes happen, so if you overspend one week, don’t get down on yourself. Just make sure you try to do better over the next two weeks.
It’s once patterns start to emerge when you might need to take a little extra time and think about it. Are you spending too much eating out three weeks a month? If so, consider how you might try to cut back, or if you should raise your spending limit there and find a place in your budget to balance it out.
While budgeting yourself might seem anathema for your YOLO lifestyle, small steps can really go a long way.
Or as Dawkins says, “It’s nice to know that saving smartly and living a full life don’t have to be mutually exclusive. Not only can they co-exist, but they can also lend to one another when properly informed.”
Photo Credit: stock photo
I like the fear of missing out tip.
When you have a particular event or task you are trying to work towards you’ll always find a way to get it done.
Hence you could use that same mentality towards your finances.
I agree, Cory. When I set goals, I always do my best to find a way to “get ‘er done.”
I refer to it as “slaying my dragons.”
Amen to that!
In another article nearby, ways to get out of credit card debt are discussed.
Why not really think about Albert Einstein’s remark that “compound interest is a miracle”? Why not create the “miracle” in your life, instead of accumulating credit card debt in the first place?
If you make it a goal to use credit cards BUT never pay any interest on them, you can effectively pay yourself the interest saved, compounded throughout your life.
Develop an excellent credit rating, use “cash back” cards available to you and pay off the entire balance in each billing cycle.
I like the idea of turning your FOMO to the future… especially if you apply a compounding interest calculation! It can be very enticing to save a bit now if it means an exponential amount in the future.
I am convinced if more high school teachers illustrated the power of compounding interest to their students, a lot more young adults would be interested in saving for their future and being financially responsible before leaving the nest.
I remember not saving for emergencies… Big mistake! I was never the type to take expensive vacations or keep up with the Joneses in any other way, but when emergencies struck and we were broke – gulp! Good thing is, it IS possible to FOMO, YOLO and save money at the same time. Balance is everything.
Well said, Adriana!
Much needed words of advice for someone (me) who is really struggling in her 20s right now. I have such bad FOMO and end up overspending to not miss out no matter how many times I tell myself I’m going to stick to my budget for the week.
Ironically, many of those who suffer from FOMO, seem to forget that failing to budget and/or save so they can live for today may ultimately lead to the lack of an adequate retirement nest egg when they’re old and gray! (So near-term FOMO, but not long-term FOMO. Makes no sense!)
Len, I can’t resist posting this again, from one who IS old and gray:
http://lenpenzo.com/blog/id22017-how-i-live-on-less-than-40000-annually-ralph-from-west-virginia.html
I knew as an adult I was totally on my own. My work hours were feast or famine. I saved as much as I could for the lean times. I gave my offerings, and talked to God a lot. I was okay.
Better days didn’t change my saving habits. Time spent with friends was very rewarding. I enjoyed traveling too.
I started saving for retirement in my 20’s. I had to retire early because of health issues but I am okay. I want for nothing.
FOMO means Forever Outta Money Ouch!