We have all heard this saying at least once or twice. But what does it mean?
We have all heard this saying at least once or twice. But what does it mean? If you say that someone is keeping up with the Joneses, you mean that they are doing something to show that they have as much money as other people, rather than because they really want to do it. I believe this goes hand in hand with FOMO (Fear of Missing Out). It has been said that this way of thinking is amongst younger Americans although it has been my experience to see it amongst all ages. There is this increasing sense that living up to someone else’s standards just isn’t going to cut it. When we try to keep up with the Joneses, we are comparing ourselves to our nearest neighbors or peers.
We live in a world of social media (i.e.- Facebook, Instagram, Snap Chat, etc.). People love to show everyone the beautiful vacation they went on, the new car they just bought or the latest designer handbag or shoes that just came off the runway. What they fail to show is the massive amount of debt or the late notices on their car payment. In my past career I saw everyday how people chose to manage their finances. It shocked me how much they would spend on non-essentials while their homes were in foreclosure, or their vehicles were being repossessed. Now, I know it is hard to escape the influence of those around us who seem to have it all and live free and easy lifestyles. It is not, however, impossible to stop trying to keep up with everyone around us.
Americans are in a lot of debt and this comes largely from living beyond their means. So many struggle to pay their everyday living expenses. This contributes to anxiety, trouble sleeping, and relationship problems all to be able to say, “I have what someone else has.” It’s easy to look like you have more than you do. That’s what credit lures us into. Trying to spend your life looking like something you are not, isn’t all it’s cracked up to be. At the end of the day, you’re the one who must pay the bills.
Why do we do this to ourselves? We are all familiar with the saying “money can’t buy happiness.” Hoarding money and not enjoying life or collecting material possessions will not lead you to contentment. If you are looking for happiness and financial freedom, keeping up with those around you will not get you there.
In the book “The Psychology of Money” by Morgan Housel (available on Amazon (insert link) there is a chapter called “Wealth is What You Don’t See.” “Spending money to show people how much money you have is the fastest way to have less money.” I read that line several times. It is probably one of the best quotes I have ever heard. There are wealthy, financially happy people all around you and you probably don’t even know it. They are driving used cars, living in modest homes and their children go to public schools rather than the fancy private schools in your neighborhood. We see someone with a beautiful car, or a gorgeous house and the first thing that comes to mind is, they must be well off or have a great job and make a lot of money. One’s salary is not wealth; it is temporary money. Wealth is based on money saved, not money earned.
True happiness comes from within. It’s easy to blame feelings of discontentment on outside sources like money or stuff, but true contentment and lasting joy doesn’t come from anything money can buy. If only I had a better paying job, if only I had a nicer car, if only my kids went to private school. When you love what you have, you have everything you need. I am not saying you shouldn’t strive to improve your situation and not try for the better job or more reliable car. We should all try to improve ourselves every day. There are ways to attain true financial freedom and happiness.
At Financial Freedom, we can dig deep into identifying your patterns and behavior when it comes to finances and help you create a healthier attitude that leads to better financial decisions.
