Don't let YOLO undermine your Money Goals

Part 1 of Investorgetic® Series series

Are you someone who takes a "YOLO - you only live once” approach to money? It’s true that we should seize life with both hands and enjoy it as much as we can. But this is not an excuse to spend, spend, spend. If anything, it is more reason to take a long-term, responsible approach to your wealth.  

People are living for longer. If your idea of living life to the fullest is spending all your money on life’s luxuries, what happens if you live to 90 or older? Could you guarantee yourself a decent living for 30 years or more after retirement?

Consumerism has blinded us to the true sources of love, happiness and success. Advertising tells us we can find these things in products and services. We borrow to spend, and we spend to enjoy our lives. Most of us don’t even question this; it’s just what we do.  

Are you a Consumerholic? 

You may be thinking, “This isn’t me. I’m in control of my wealth and how I spend my money.”  

Maybe, maybe not. Look at the following list. You know you’re a Consumerholic when you:

  1. Feel the need to buy more clothes, bags, shoes and perfumes, despite having a cupboard full of these things (some of which you probably never wear).

  2. Live week to week and save none of your income.

  3. Spend more than you earn, accumulating personal credit card debt

  4. Pay for holidays and other luxuries with your credit card or home loan redraw, rather than saving for them.

  5. Believe a car is an investment.

  6. Ignore opportunities to invest (apart from paying off the mortgage).

  7. Are scared to borrow money to invest, yet have no issue with borrowing to consume, eg. for new furniture, overseas holidays.

So how do you score? Do any of these points ring true for you? If so, your spending habits need an overhaul. To build your wealth and retire in comfort, you need to change your spending habits and your mindset. You need to invest your money wisely. You need to become an Investorgetic®.

Find your inner investor

An Investorgetic® mindset is not about denying yourself enjoyment. It’s not about putting your life on hold and giving up all of life’s luxuries. Rather, it’s about living within your means – at every stage of your life.

So, how exactly is an Investorgetic® different to a Consumerholic? Typically, an Investorgetic®:

  1. Plans proactively for the long term.

  2. Ensures their daily actions are tied in with their long-term goals.

  3. Is careful with money. They plan, budget, save and live within their means.

  4. Focuses on income-producing asset investment.

  5. Saves money for emergencies and holidays.

  6. Puts money into an education fund for their children.

An Investorgetic® makes wise money choices that help them reach their financial goals. They get excited about investing – yes, such people exist!

They have a different approach to living life: they don’t rely on credit cards and they know the difference between necessary and unnecessary expenses. Every decision they make is pointed at building their long-term wealth.

But to know where to invest your money and what you want to get from your investments, you need to have a clear vision of what you want your financial future to be. Without a well-defined vision, nothing will change.

Stay tuned next week for Part 2 of the Investorgetic® Series on how you can articulate your Magna Vision.

Susan Wahhab