Is YOLO putting you on a credit yo-yo

Author: ME

Published at: 2/3/2017 9:42:25 AM

Yolo Yoyo

There’s nothing quite like the thrill of a bargain. But don’t let impulse buys shape your shopping.

A new rug, some designer cushions, maybe a new gadget for the kitchen – almost half of us are making ‘You Only Live Once’ (YOLO) purchases, and while it could be making your home a showpiece, our research shows YOLO spending can leave your finances threadbare. 

There’s no doubt buying something special for our homes can be a source of great pleasure. And with so many speciality stores available it can be hard to resist a lovely throw for the sofa, a fresh set of plush towels for the guest bathroom, or one of those fabulous outdoor dining sets that bring a burst of colour to an al fresco lunch.

While 40% of YOLO shoppers say they gain pleasure from their spur-of-the-moment purchases, for one in five, the joy soon turns to guilt. So it’s worth taking a few steps to be sure an impulse buy remains a positive experience. 

Is that YOLO purchase really right for your home?

The golden rule is to take a moment to consider whether an item will really complement the décor of your home. When it comes to appliances and kitchen gadgets, consider whether you’ll really use the purchase or is it likely to become a dust collector?

We all love the idea of baking fresh loaves for the family for instance, but the best intentions can quickly go stale, with a survey by Origin Energy confirming that bread makers are among the kitchen appliances most likely to end up unused in the back of a cupboard[1].

Don’t let YOLO leave you lumbered with debt

Allowing some wiggle room in your budget can reduce the financial impact of impulse buys especially if you aim to pay with cash or a debit card. The trouble is, ME Bank found one in ten YOLO purchasers have gone into debt as a result of piling impulse buys onto a credit card.

So take a moment to consider whether you can clear the card balance in full each month. That way you’re not adding interest charges to the cost of a purchase – something that can quickly take the shine off even the most tempting YOLO bargain.



[1] Origin Energy, MP3 players fade away; bread maker cooked; mobile and home wi-fi increasingly important, 18 May 2014 http://originenergy.com.au/news/article/asxmedia-releases/1573

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