YOLO: A Consumer Trap.. Avoid It!
In recent years, the term YOLO has appeared on the economic stage. It is an acronym for “You Only Live Once,” meaning that you live only once, and its purpose is to encourage consumption in order to enjoy the life we live only once. It has thus become part of modern consumer culture, especially with the spread of social media, which encourages travel, new experiences, purchasing products, and enjoying the present moment, as well as comparing oneself to others. As an idea in itself, it may not seem negative, since human nature tends toward enjoyment and trying new things. However, the problem arises when YOLO shifts from enjoying life to making uncalculated financial decisions and unjustified consumption, such as buying unnecessary accessories or taking on additional debt to book travel tickets and other matters that strain an individual’s budget and threaten their financial stability.
Undoubtedly, with the spread of social media, the problem has intensified. We no longer look only at what we want to own or experience, but at what others have or live. Consequently, these comparisons may affect some people, turning consumption from fulfilling a genuine need into an attempt to keep up with a lifestyle we see on our phone screens, much of which may not even be real. The problem is not spending per se, but rather the lack of balance between income and expenditure, and the absence of saving and investment. Here, it must be clarified that economically, saving or investing does not mean depriving oneself of life. Rather, the foundation of sound personal financial management is based on the concept of trade-offs between current consumption and future security, or between future consumption and increased financial stability. Every amount we spend today is an opportunity foregone to increase our income, investments, or savings. Therefore, YOLO behavior should begin only after an individual has secured their financial future, or ensured an income that compensates for their consumption spending.
Undoubtedly, there is no single financial rule that suits everyone, but there is a minimum threshold of financial security that an individual should achieve before adopting YOLO-based consumption behavior, if they choose to do so. Many experts recommend building a reserve that covers approximately six months of essential expenses, or saving an amount equivalent to at least six months’ salaries, to achieve financial security. This may make consumption behavior less risky to human economic stability. The primary goal is for a person to possess an amount that enables them to continue living in the event of emergencies or unforeseen circumstances.
The most successful advice here is not to enjoy life without a plan and with financial chaos, under the pretext that we live only once. Rather, the most successful advice is: “Secure yourself financially,” and then enjoy your life, because you live it only once.
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