How to get off the YOLO and FOMO train and start saving
Published on January 10, 2018
Got money to spend? How about splurging on a night out or buying that new smartphone you’ve been dreaming about?
If you’re tempted to pull out your credit card every time your friends whip out theirs during a shopping trip, chances are that your savings fund isn’t looking good.
If you only live once (YOLO) and the fear of missing out (FOMO), YOLO’s ugly stepsister, are driving your spending habits, here’s how you can get back on the savings train.
1. Stop trying to keep up with the Kardashians:
Be clear about what matters most to you and stop spending money on things you don’t need to impress people who don’t matter.
2. Set yourself a budget:
Creating a savings account doesn’t mean you need to stop spending. Set a weekly or monthly budget for shopping and entertainment and only take along cash or a debit card.
3. Hone in on a major goal you may have:
Be it saving for a down payment on your dream home or paying off your student loan, visualize what you want by creating a board of photos of your dream home or the vacation you want to take once you pay off your student loan. Use these images as prompts when you’re tempted to overindulge. Keep your eye on the prize.
4. Cut up your credit cards:
Placing items on credit is only going to increase your outgoings in the long run. Focus on paying off debt on your cards and paying with your debit card instead.
5. Plan events in advance:
Booking expensive treats like holidays and concerts can cause overspending. Try to book these in advance so you know exactly how much you’ve spent and how you can work them into your budget.
6. Set up a direct debit:
Setting up a monthly direct debit into a savings account will ensure that you’re actively saving each month.
7. Keep a record of your incomings and outgoings:
You can do this by manually recording your finances each week/month or by using an online tool. Keeping track of your finances will help you to see what is going in and out of your account and manage your finances more successfully.
8. Wait 48 hours before you buy:
When you do, you’ll find that most often than not, the item was more of a want than a need.
While it’s important to live in the moment and enjoy life, without checks and balances in place, you’ll find yourself saying yes to everything and missing out things that really matter.