Why just watch people splurge when you can join them by saving
Popularised by the rapper Drake in 2011, the phrase YOLO has become a motivational phrase to do that thing because *wait for it, you only live once.
In 2019, the unexpected COVID-19 pandemic led to a worldwide lockdown. YOLO has never resonated as much with us until then (You might be able to tell from the 3rd wedding post on your Instagram feed this year).
With restrictions lifted, we’re finally doing what we want. This year could be the year where you can tick all the boxes off your list.
So what do you want to do?
Most probably you already have an idea so let’s jump into how you can avoid that FOMO by saving right.
In this article:
1. Check your finances first before starting your money saving plan
Before you throw caution to the wind in the name of YOLO, here’s a quick flashback to what the past 2 years has taught us:
Instead of pressing that Checkout button, drop by your bank account statements.
Here are a couple of things for you to check:
- Your savings
- Your emergency fund
- Your financial commitments
Just because you can afford, it doesn’t mean you can start spending ASAP. Remember, you still need to have a stable financial foundation. Self-reward is great but nothing tops financial security.
2. Start saving money by planning
Once you understand your financial status, it’s time to start thinking about how you wanna get to that goal you want.
Ask yourself these questions:
- How much do you need to splurge comfortably?
- When do you want to do the activity?
That’s not all! A quick Google search and you will discover there are many types of loyalty cards, discount websites and online promo codes. Sometimes it is also about timing – monthly sales promotions and special events will give you better deals.
By planning ahead, you know how much $$$ you need.
3. Another money saving tip: set a splurge fund
Splurging means spending BIG. Before you drain your savings account, why not open a separate account just for splurging? This way you can avoid dipping into your savings account and keep track of your splurges.
Start off with a small amount, and keep adding to it. Make your splurge fund grow faster by saving in an account that rewards you with bonus interest!
Opt for low-risk and secure platforms such as Versa Cash that gives returns up to 2.46%* yearly. As this platform allows you to withdraw anytime, it’s perfect for putting in funds that you plan to take out anytime.
If your splurges lean towards longer term goals, like a new car, then you can invest in relatively higher risk funds. This is because you have time to weather short-term ups and downs in the market. Versa Invest offers two portfolios of varying risks, giving you the flexibility to choose the risks you’re comfortable with. Not only that, you can access premium funds handled by global fund managers!
4. Cut, cut, cut – the best way to save money
What’s the best way to save? Cut out your unnecessary expenses. You might be surprised by how small expenses build up. From paying unnecessary bank fees to unused subscriptions, there are many areas you can cut down spending!
5. Save money and have fun
You’ve done the hard part. Now’s your chance to reap the hard work you sowed!
But remember not to have too much fun 😉
*Projected returns for 2022. Inclusive of fees.