Living in the moment is something we all strive for. We practice being present. While that is a great philosophy for living life, it should not be the philosophy for your finances. Practicing YOLO finances may spell disaster 💸.
There are big differences between having a long-term versus short-term mindset with your finances. In the long-term you are thinking about building wealth versus in the short-term you are focused on budgeting month by month. In the long-term you are obsessed with reducing your debts as quickly as possible while short-term thinkers are satisfied with making minimum payments.
If you plan long-term you are likely maintaining discipline with your finances and practicing delayed gratification. You don’t make impulse buys and maybe that pay raise all goes towards savings. Meanwhile the short-term mindset may succumb to immediate gratification, those shiny new purchases. Lifestyle inflation goes along with every pay raise and other extra cash that comes in.
I think being a little bit of both is a good balance. Short-term and long-term planning is required for stability. We all need to cover short-term needs in order to achieve long-term goals. We can live in the moment while keeping an eye on the future 👀.
MMM tip: Set one long-term financial goal, no matter how unreachable it may seem right now.
Until next week,
Dariene
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Disclaimer: This newsletter is for informational and educational purposes only and should not be considered financial, investment, tax, or legal advice. I am not a licensed financial advisor. Please consult a qualified professional before making any financial decisions.
