The Advantages Of YOLO In Your Finances

I always love February financially because my bonus and profit sharing gets paid out.  For my 20 something colleague her bonus is already spoken for, she’s using it to finish up funding her 2013 Roth IRA contributions.  If you haven’t hit the $5500 maximum allowance for 2013 you have until April 15 to complete it.  She’s going to spend under $100 bucks for a night out to celebrate’s all the hard work that was put in last year to earn that bonus.  This girl works hard yet she wants to lock her money in for 30 years instead of spending it today. Spring break is around the corner, she could spend $2000 of it and then blog on how to save money by making it all inclusive.  A  quite week here in Hawaii, talk about missing out on some good times.  30+ years is so far away, you’ll always get older but you won’t always be in your 20s.

Our negative net worth 47 year old coworker though she’s got the right idea.  She’s got all kinds of debt, this bonus will help pay for some of it .  She plans to use half of the bonus to pay for her week long Vegas trip.  This trip is needed because of her money struggles for 51 weeks, she needs a few days off from her finances.  That’s the advantage of YOLO that no matter how bad your financial situation is there’s a party somewhere, and you’re invited.  You never need to say no because investing and retirement is only for the rich and not for the average person. You never have to worry about interest rates and how much you owe, debt is based on monthly and minimum payments.  Budgeting isn’t difficult under YOLO, when do you get paid and what are the minimum payments on your loans is all that you need. You’ll never worry about your budget changing on a monthly basis because you’ll always have monthly payments.

YOLO savings plan is far superior to any other type.  High debt load?  No worries because tax returns is found money meant to be spent to help relieve your stress and should not be included in household finances.  If you have credit card debt you can save for nice vacations and give great Christmas gifts by “saving” for it and not consider that you’re still financing it with debt.

More money more problems, YOLO will ensure that never happens because you won’t have money to stress about.  YOLO your savings and buy my colleague a beer at the bar in Vegas.



  1. I hope my colleagues don’t refer to me as “negative net worth” co-worker :( Just kidding, I understand where you are coming from. It’s probably discouraging to see a co-worker who has negative net worth yet isn’t making strides to pay it down. As far as going on vacations while in debt, I don’t oppose it but I think you should be a little more motivated to find creative ways to pay for it – which is exactly what my post is about tomorrow!
    DC @ Young Adult Money recently posted…3 Types of Insurance all Parents Should HaveMy Profile

  2. Just reading that gave me the hives.

    I started saving the max (for employer match) for retirement, and cleared $60,000 of my student loan debt in 18 months once I realized I had to get my act together (when I started my job at the age of 23) and kind of never looked back since.

    Now I kind of coast along working half the time and traveling/relaxing which seems to suit my kind of temperament (I need a break from working or I will go bananas on someone).
    save. spend. splurge. recently posted…Christmas / Holiday Feast 2013 In PicturesMy Profile

  3. heh heh I sense the snark from that post. :) It’s always tough to sit by and watch people make…well maybe not the best decisions ever with their money. BTW you have very open colleagues that seem to be very willing to discuss their money! I know personal finance is personal, but you don’t let a baby play with broken glass do you? I find it’s sometimes hard not to step in and give an opinion…but I don’t.
    Tonya@Budget and the Beach recently posted…The Hidden Cost of Big Fitness Goals/GiveawayMy Profile

  4. I remember reading about your negative net worth co-worker…I guess she still hasn’t learned. So true about investing and retirement being “only” for the rich. My co-workers have a similar mindset and think that it is “impossible” to NOT live paycheck to paycheck unless you’re rich. Really??
    Andrew@LivingRichCheaply recently posted…Are You (Financially) Better Off Than Your Parents?My Profile

  5. Ha! I love the tone of the post, Charles. I’m conflicted about YOLO because I think there’s some real merit in the approach. In a lot of ways, living in the moment, quieting our anxieties, and just ‘going for it’ is the right way to live. But while we live once, in a lot of ways, life is long. There are a lot of future days that are impacted by what I do right now.
    Done by Forty recently posted…Give Yourself Credit (Progress is PROGRESS)My Profile

  6. Very true DBF life is long, but seems really short when you don’t plan.
    Charles recently posted…Why Do You Choose Material Items Over Your Loved Ones?My Profile

  7. I know too many people like your negative net worth coworker. That was actually one of my main motivations in starting a blog, was hoping to help people like that. YOLO is one of those phrases that I wish would go away forever. I think one of my favorite quotes on it was from Jack Black who said YOLO is just carpe diem for stupid people.
    Ryan @ Impersonal Finance recently posted…make my budgetMy Profile

  8. How sad is that, Charles? We used to be the same way, and now that we’ve woken up and are kicking it big time to get out of debt, it makes us all the sadder to see that it still is happening to many of our family and friends. The thought of being at retirement age with no hope of retiring freaked us out, but I think a lot of people just figure “it is what it is” and that they have no control over it.
    Laurie @thefrugalfarmer recently posted…Credit Cards: Did You Know These Truths?My Profile

  9. This was an interesting post for me. We’ll likely cross the $1M NW mark at some point this year, and now I’m beginning to wonder, should I be taking the YOLO principle more to heart. How much more do we really need? I guess that’s always the dilemma you have before stepping up to a new and bigger mortgage :)
    Integrator recently posted…My Venture Portfolio UpdateMy Profile

  10. Definitely there’s a right balance in there, somewhere. When I was first learning how to save, I maybe overdid it, and that’s all I was focusing on… Life can feel a little constraining if you are always pinching pennies. OTOH, people like your co-worker just don’t have a plan and unless they wake up and realize this soon, they will most likely be working into their twilight years.

    In Integrator’s case, getting to $1M NW is a huge, huge achievement. If I were to ever get there, I would loosen up the purse strings a little bit… I’m kind of doing that now, and I’m still pretty far away from a cool $1M. As long as you’re responsible with it, and can still keep making progress, go out and have a little fun. You deserve it!
    FI Fighter recently posted…Inspirational Posts of the Week (February 15, 2014)My Profile

  11. I remember when I discoverd this new YOLO trend. It seems to me that nothing good ever comes out of YOLO.
    Marvin recently posted…Quality Used CarsMy Profile


  1. […] hard, spend less than you earn, avoid bad debt and invest the rest.  Our consumption and YOLO society  is the biggest reason why millions struggle to follow that concept.  When I struggle with […]

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