Saving money has traditionally been seen as an expression of responsible conduct. To save money was equated with being wise and mature. Budget diaries were an essential material in a household’s economic life. However, according to several reports, the perception of saving money has shifted in recent times. While the change can be attributed to several factors, this article examines the impact of “YOLO”. The practice of saving money is being replaced by a philosophical concept termed YOLO, an acronym for “You Only Live Once”.
The declining practice of savings among the youth is being reported in many countries. This article examines this trend in the context of India. According to reports, in comparison to the pre-millennials, the youth – millennials, and post-millennials tend to focus less on savings. Rather, there has been an increasing tendency to spend almost all of their earnings.
This article locates the concept of YOLO and the declining practice of savings in the contemporary political economy. The contemporary society is heavily shaped by the economic principle of neoliberalism. Neoliberalism promotes privatization and advocates for the reduction of government regulations in the economic sphere. While neoliberalism is an economic principle and policy, it has impacted all domains of social life. In terms of socio-economic behavior, it has led to consumerism. Society places a profound emphasis on consumerism and material possessions. The pursuit of wealth and accumulation of material goods are seen as status symbols and markers of success. In this context, saving money can be viewed as limiting oneself from enjoying the luxuries and experiences that money can buy.
These consumerist desires are also linked with the idea of happiness. In a capitalist society, we can also “buy” happiness. This is where the concept of YOLO comes in. In the name of pursuing one’s desires which are often socially defined, people are spending money more than they can. Keeping in mind the uncertainty of life, “YOLO” also usually entails instant gratification i.e. immediate enjoyment and experiences. The resulting effect has been the rising dominance of EMI culture. In his blog titled “How the rise of consumerism is being powered by EMIs in fulfilling the great Indian millennial dreams”, Samir Kapur notes that the EMI scheme and small consumer loans are very popular among the youth in urban India. Moreover, this trend of EMI financing and loans is not limited to Tier 1 cities but is also prevalent among people in Tier 2 and Tier 3 cities.
Social media also works as a site of cultural reproduction. Social media platforms showcase a curated and often unrealistic portrayal of lifestyles filled with luxury, travel, and experiences. Seeing others indulge in extravagant purchases and experiences may lead to a sense of FOMO (an acronym for “Fear of Missing Out”) and make saving money seem “uncool” by comparison.
The concept of “YOLO” encourages people to embrace a hedonistic and adventurous lifestyle. This concept combined with the practice of not saving money works as a capitalist trap to ensure that people do not quit their jobs as they get caught in the cycle of EMIs and debt.
Financial prudence and saving for the future are essential for long-term financial stability and security. Saving money allows individuals to build an emergency fund, invest for retirement, and achieve financial goals. While it may not be considered “cool” by some, it is still a responsible and beneficial practice in the long run. Moreover, while instant gratification through material possessions may lead to pleasure, the cycle of EMI and debts leads to anxiety. Thus, financial literacy focusing on the significance of savings is essential for contemporary society, particularly the younger generation.
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