{"id":11788,"date":"2017-08-05T12:10:43","date_gmt":"2017-08-05T06:40:43","guid":{"rendered":"https:\/\/blog.fundsindia.com\/blog\/?p=11788"},"modified":"2017-08-08T14:12:05","modified_gmt":"2017-08-08T08:42:05","slug":"yolo-phrase-ruining-your-financial-health","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/personal-finance\/yolo-phrase-ruining-your-financial-health\/11788","title":{"rendered":"YOLO &#8211; the \u2018cool\u2019 phrase that may be ruining your financial health"},"content":{"rendered":"<p dir=\"ltr\"><a href=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2017\/08\/fernando-puente-310512-small.jpg\"><img loading=\"lazy\" class=\"aligncenter size-full wp-image-11791\" alt=\"An SUV driving through water, near mountains\" src=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2017\/08\/fernando-puente-310512-small.jpg\" width=\"1200\" height=\"801\" srcset=\"https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2017\/08\/fernando-puente-310512-small.jpg 1200w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2017\/08\/fernando-puente-310512-small-300x200.jpg 300w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2017\/08\/fernando-puente-310512-small-1024x683.jpg 1024w, https:\/\/www.fundsindia.com\/blog\/wp-content\/uploads\/2017\/08\/fernando-puente-310512-small-100x66.jpg 100w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a><\/p>\n<p dir=\"ltr\">YOLO &#8211; You Only Live Once. Those who were born in the nineties would have come across this phrase at least once in their lives. That is if they\u2019re not the ones who say it. The idea behind this term is that as you get only one life, you should live it to the fullest.<\/p>\n<div class=\"blog-highlight\" style=\"clear: both; background: #3ba010; border: none; width: 60%; text-align: center; box-shadow: 0 5px 5px rgba(0, 0, 0, 0.5);\"><a style=\"text-decoration: none;\" href=\"http:\/\/www.fundsindia.com\/content\/jsp\/registration\/login.jsp?ref=blog-button\" target=\"_blank\"> <span style=\"color: #fff; font-weight: bold;\">Open<\/span> <span style=\"color: #fff; font-weight: bold; text-decoration: none;\"> a FREE Account Now! <\/span><\/a><\/div>\n<p dir=\"ltr\">To some, this means that they should live only for today and that they\u2019ll handle tomorrow when it arrives. In short: life is all about the now, and nothing else matters.<\/p>\n<p dir=\"ltr\">So, they work hard and party harder &#8211; splurging to their heart&#8217;s content. Whatever they do save is usually for the immediate future &#8211; for the night at the club, the day-trip somewhere nice, that fancy new watch, and so on. They believe that money is only for spending, and so impulsive splurging is cool while saving is uncool and boring.<\/p>\n<p dir=\"ltr\">Some of them may take it a bit far, ending up broke every other month. Others, in their pursuit of material (or other forms) of happiness, may rack up several EMIs because they believe they\u2019ll just pay it all off tomorrow.<\/p>\n<p dir=\"ltr\">All in all, this seems a pretty fun way to live life. But, some of these things could be terrible for one\u2019s financial health. That is one of the reasons why I don\u2019t completely agree with the \u2018live only for today\u2019 philosophy.<\/p>\n<p dir=\"ltr\">I believe that \u2018You only live once\u2019 doesn\u2019t really translate to \u2018you only live today\u2019, and actually means living life to the fullest, always. I believe that we can enjoy today and secure our tomorrows while still having fun &#8211; if only we plan for it smartly.<\/p>\n<p dir=\"ltr\"><strong>Tomorrow does come<\/strong><\/p>\n<p dir=\"ltr\">One of the arguments that are popular in favour of the \u2018live life to the fullest today\u2019 school of thought, is that one never knows what may happen tomorrow, which is why it\u2019s best if you live for today.<\/p>\n<p dir=\"ltr\">However, there are a few things that we do know will happen for sure tomorrow. One, the cost of living will go up &#8211; this means that food, clothes, education fees, cars, and other goods and services will get more expensive over time. We can see the proof of this by comparing the cost of bread or butter or your school tuition from 10 years ago with the prices today. Two, we\u2019ll all have to retire some day &#8211; which means, at some day in the future, we will not have any salary to depend on.<\/p>\n<p dir=\"ltr\">The only way to mitigate the effects of the higher costs of living and to be prepared for our retirement is to start saving.<\/p>\n<div class=\"blog-highlight\" style=\"clear: both; background: #f4f4f4; border: none; width: 60%; text-align: center; box-shadow: 0 5px 5px rgba(0, 0, 0, 0.5);\"><a style=\"text-decoration: none;\" href=\"http:\/\/www.fundsindia.com\/content\/jsp\/registration\/login.jsp?ref=blog-button\" target=\"_blank\"> <span style=\"color: #000; font-weight: bold;\">Open<\/span> <span style=\"color: #000; font-weight: bold; text-decoration: none;\"> a FREE Account Now! <\/span><\/a><\/div>\n<p dir=\"ltr\">So, having fun is good, necessary even, to live a healthy life. But it is also important to save for tomorrow. For a generation that dreams big, buying that fancy Audi, taking an overseas vacation, owning a fancy house &#8211; all of our dreams will remain just dreams if we do not plan for our future goals.<\/p>\n<p dir=\"ltr\">Take a friend of mine, for example. He\u2019s been planning to quit his job and start a company of his own. He came close to doing it too, early this year &#8211; but then the financial reality kicked in. With little savings to his name, he realised that he would not be able to pay for his rent and food without his salary, let alone start a company. That\u2019s why he\u2019s now decided to stay on for another year or two &#8211; but this time he\u2019ll be saving up smartly.<\/p>\n<p dir=\"ltr\">In contrast, a colleague of mine just bought himself an i20 without a loan. How? He\u2019d been saving and investing for a car ever since he started working.<\/p>\n<p dir=\"ltr\">To sum up: be it <a href=\"https:\/\/www.fundsindia.com\/blog\/general\/6-point-checklist-for-financial-security\/11691\">achieving financial security<\/a> or ensuring a comfortable, luxurious life, it is important to start saving. (Still not convinced? Here are <a href=\"https:\/\/www.fundsindia.com\/blog\/general\/seven-reasons-why-we-need-to-save-every-month\/11032\">7 reasons why we need to save every month<\/a>.)<\/p>\n<p dir=\"ltr\"><strong>First add, then multiply<\/strong><\/p>\n<p dir=\"ltr\">One thing we need to remember is that saving is only the first step to fulfilling your dreams. The next and most important step is to start investing.<\/p>\n<p dir=\"ltr\">With bank accounts giving a mere 4% per annum as interest, the money in our savings account is practically sitting idle (the average inflation from July 2016-June 2017 was 3.6%). To make this money grow and compound, we need to invest it in higher returning investment avenues like mutual funds.<\/p>\n<p dir=\"ltr\">Mutual funds offer a vast variety of options that can suit every need. From parking money for just a few months to a year to growing money over several years, there are options for everything. Mutual funds are also more tax-efficient and have historically delivered higher returns than bank accounts and fixed deposits. In fact, equity mutual funds &#8211; the ones suited for long-term investments &#8211; have averaged double-digit returns over longer time-frames (5-10 years).<\/p>\n<p dir=\"ltr\">So, by investing in mutual funds, we should be able to grow money faster than we could by keeping it in a savings account or an FD.<\/p>\n<div class=\"blog-highlight\" style=\"clear: both; background: #f4f4f4; border: none; width: 60%; text-align: center; box-shadow: 0 5px 5px rgba(0, 0, 0, 0.5);\"><a style=\"text-decoration: none;\" href=\"http:\/\/www.fundsindia.com\/content\/jsp\/registration\/login.jsp?ref=blog-button\" target=\"_blank\"> <span style=\"color: #000; font-weight: bold;\">Open<\/span> <span style=\"color: #000; font-weight: bold; text-decoration: none;\"> a FREE Account Now! <\/span><\/a><\/div>\n<p dir=\"ltr\">This higher growth, when <a href=\"https:\/\/www.fundsindia.com\/blog\/mutual-funds\/3-reasons-goal-based-investing-good\/11436\">combined with a little planning<\/a> will ensure that you can soon afford those currently out-of-reach goals, live in comfort and retire in comfort. All this without jeopardizing your financial situation with too much debt (loans and credit card dues).<\/p>\n<p dir=\"ltr\">In short, the fact that you only live once is the biggest reason why you need to start saving and investing today. You get only one shot at life, don\u2019t end up spending it repaying EMIs.<\/p>\n<p><em>\u00a0Photo by\u00a0<a href=\"http:\/\/unsplash.com\/photos\/eu2EP0CGWz4?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Fernando Puente<\/a>\u00a0on\u00a0<a href=\"http:\/\/unsplash.com\/?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText\">Unsplash<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>YOLO &#8211; You Only Live Once. Those who were born in the nineties would have come across this phrase at least once in their lives. That is if they\u2019re not the ones who say it. The idea behind this term is that as you get only one life, you should live it to the fullest. [&hellip;]<\/p>\n","protected":false},"author":25,"featured_media":11791,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[66],"tags":[265,517,148,489,516,518,288,490,488],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>YOLO - the \u2018cool\u2019 phrase that may be ruining your financial health<\/title>\n<meta name=\"description\" content=\"As cool kids say: YOLO, you only live once, and that is the biggest reason for you to start investing today. You get one life, don\u2019t spend it repaying EMIs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fundsindia.com\/blog\/personal-finance\/yolo-phrase-ruining-your-financial-health\/11788\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"YOLO - the \u2018cool\u2019 phrase that may be ruining your financial health\" \/>\n<meta property=\"og:description\" content=\"As cool kids say: YOLO, you only live once, and that is the biggest reason for you to start investing today. 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