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.