Now more than ever, millennials are trying new things and engaging in different experiences to avoid FOMO, the fear of missing out. They embrace the mentality that you only live once (YOLO); but unfortunately, this mindset has come at a price. According to one study, nearly 40% of millennials have spent money they didn't have in order to keep up with their peers and live up to these unrealistic expectations. It's the constant tug of war between having fun and not draining your bank account.
So how can you live your best life on a budget? These tips will help you keep your finances in check, so you won't have to miss out on events and experiences.
1. Start a YOLO fund. Similar to a rainy day fund, a YOLO fund is money set aside specifically for vacations, concerts, a new pair of shoes you've been eyeballing, or whatever else you enjoy spending money on. Our suggestion? Set up a separate account with an automatic deposit so you can have money put into it regularly. This will keep you from spending irresponsibly when FOMO or YOLO hits.
2. Save with Apps. Popular apps like Groupon and Living Social are tailored toward giving customers a good time at a discounted rate. Use them when planning an activity with friends, or when you want to treat yourself. Want to splurge on a new outfit? Check out coupon apps like RetailMeNot for the latest promo codes and coupons.
3. Log off, unsubscribe, unfollow. Is your inbox flooded with the latest deals and steals from your favorite brands? Unfortunately, retail emails serve as a constant reminder of the next best thing to spend your money on. Unsubscribe from these emails or unfollow the brands on social media to curb that FOMO feeling. Log off completely if you start feeling pressured to keep up with your friends. There is a happy medium that exists between your budget and all of the things you want to do. You just have to find it!
Need some help budgeting for fun? Learn how to create a budget in minutes with our free Money iQ education course.
