Are you guilty of Yolo living?

More and more Brits are now using ‘YOLO’ (You Only Live Once) as a reason to spend impulsively without thinking about the future, according to the Money Advice Service (MAS).

MAS has revealed some shocking stats around this increasingly popular mind-set, including:

• Five million unplanned purchases now take place on an average day, which translates into more than £167 million[i] spent daily on impulsive buys.
• It’s estimated that 15 million Brits have made a YOLO purchase in 2015 – a figure that has increased by 158% since 2012!

These YOLO moments are mostly likely to take place on or just after payday and are usually a way to reward or cheer ourselves up with an unplanned purchase. They are likely to include buying clothes (40%), impulsively deciding to eat out (35%), ordering a takeaway (30%), buying the latest gadgets (20%) or booking a holiday (17%). I think we can all relate to at least one of these!

MAS is concerned that this YOLO spending could lead to a rise in credit card debt – with one in four (21%) saying they mostly pay for these YOLO purchases using credit. In fact, nearly one in 10 (7%) or 2.1 million Brits say their YOLO spending has led them into debt by an average of £293.

So, how does YOLO look across the gender divide?

Women are more likely than men to splash out to make themselves feel happy or treat the children. Women also tend to make a YOLO purchase when they see a special offer, sale or deal. These purchases are usually paid for by debit card but are likely to push them into their overdrafts as a result.

Men, on the other hand, are three times more likely to make a YOLO purchase after drinking alcohol and almost twice as likely as women to ‘YOLO buy’ after a good day at work. They are also two times more prone to making YOLO purchases to keep up with friends and have the latest trendy item but prefer to pay for this on a credit card.

Although men and women make equal amounts of YOLO purchases, the way they feel about them afterwards is quite different. Men are more likely to forget about it and are less likely to feel regret. Yet women are more likely to buy something they don’t need and realise they couldn’t afford it afterwards (10% versus 8%).