Is YOLO ruining your deposit plans?

Author: ME

Published at: 8/26/2016 10:54:28 AM


Is YOLO Ruining Your Deposit Plans


Discover how to enjoy a great lifestyle without stymying your first home savings. 


This is interesting. Research from the UK shows around 5 million ‘YOLO’ (that's 'you only live once') purchases are made every day[1].


Chances are the same is happening here in Australia.


YOLO purchases are those impulse buys made on the spur of the moment. Sounds like fun but the cost can add up. In the UK, Brits spend the equivalent of $347 million each day on YOLO buys. 


Sadly, the fun factor wears off quickly. The same study found one in five Brits regret their impulse spending, and 32% are forced to cut back elsewhere to make up the money spent.


Sure, we only live once. But it’s easy to get into financial hot water with a ‘spend today, worry about it tomorrow’ attitude because for most of us, it simply isn’t sustainable – especially if you are growing a first home deposit.


Watch out for the following YOLO danger zones to stay on track with your savings plan:


Skip the sales


Sure, we all love a bargain but the same UK research mentioned earlier found women tend to make a YOLO purchase when they see a special offer, sale or deal. Give the sales a miss to avoid YOLO spending.


Don’t let beer goggles ruin your deposit


Sorry fellas, it turns out men are three times more likely to make a YOLO purchase after drinking alcohol. Maybe lock away your credit night during a night out with the lads. You can’t do too much harm that way.


Focus on your own goals


Trying to keep up with friends or work colleagues is a key YOLO risk factor. So what if you don’t have the latest iPhone? You’ll soon have your own home. And that comes with way better bragging rights.


The bottom line is you don’t have to live like a hermit when you’re saving a first home deposit. Treat yourself from time to time - but be sure to budget for it.

[1] Source: Money Advice Service (the UK equivalent of MoneySmart) media release:  The rise of YOLO* (that's 'you only live once') living, 3 December 2015.