You Only Live Once

I found this book originally under the title The YOLO Budget. Jason Vitug reminds us that living a life of meaning and purpose involves money. This perspective might help to make financial education more appealing, especially for Millennials, whose economic reality is different than that of previous generations. What’s true for them is true for all of us: We’ve lived through the financial meltdown of 2008, we need to plan further in advance for longer lifespans and longer retirements, we’re overwhelmed with information overload, and we’re learning that experiences are more fulfilling than material things. It’s time to adjust our attitude toward money.

Why aren’t people able to apply simple financial advice to their own lives?

It starts with awareness. Vitug gives the example of a man who claimed to check his bank balance every day, yet believed, incorrectly, that he wasn’t paying any fees on his account. Another man claimed that he knew exactly where his money was going, but admitted that he didn’t actually track his expenses. Another said he was “on a budget” but turned out not to have one in place. Specific terminology can mask vagueness. It’s possible to have a high degree of certainty without it being based on reality. This can be amplified by being organized, in the sense of paying bills online, checking account balances, and other activities without any real strategy behind the efficiency.

Why don’t people like budgets? Vitug says they can be reminders of past mistakes, that they can reveal there isn’t enough money for current spending habits, and that ultimately people feel that they aren’t necessary. I would have guessed (based on my own life) that the main reasons might be feeling too busy, not being all that great at math, and feeling annoyed at the “preachy” aspects that make budgeting feel similar to dieting. The difference is that Vitug actually traveled around and talked to people about their emotional connections with money, so his work is based on data, not guesswork or intuition.

Vitug saved $35,000 and took two years off to backpack around the world. The realizations and habit changes that paid for his trip are what inspired him to try to help others fund their own dreams. A big part of this comes from challenging people’s perceptions of their situation and whether they are really fulfilled by their choices. We can make emotional choices that make us happier when we are more aware of what it is that we really want. After all, You Only Live Once, and if you do it right, once is enough.

Here are some key questions from the many in the book:

1. What is my relationship with money?
2. How is my spending contributing to my life?
3. How am I using my time?

Favorite quote:

We should prioritize spending on things that contribute to our quality of life and help us progress toward our goals.