A Key Realization for a Happy Life
One of the greatest challenges to getting the most from your money is feeling like you must spend it to keep up with others. Anything from an Instagram post by a high school friend to a new car parked in a neighbour's driveway can spark a temptation to spend. Whether it’s conscious or not, most people feel a need to emulate others out of fear they’re missing out or to maintain their status. In these situations, it’s important to determine whether you’re spending for you, or someone else. If you’re enjoying your spending, then there’s nothing to be concerned with. However, if you’re spending for other people, then it’s time to reconsider your position.
Understanding and ignoring ‘the Joneses’
This idea of spending based on what others are doing is often referred to as keeping up with the Joneses. To overcome the genuine and often indulged temptation to spend money for the sake of keeping up with others, let’s consider several important facts.
1. Everyone’s situation is unique
While you and your friends may have gone to the same high school together, there are too many differences between you to count. From genetics to upbringing to circumstances, there are billions of differences between you and any other person on Earth. As a result, the idea that you should be able to afford a summer vacation, a new car or any other purchase simply because people around you can is not true.
To illustrate this, consider a bird watching a fish swim upstream. While both are members of the animal kingdom and grew up not too far away from one another, they’re incredibly different. The fish shouldn’t expect to be able to fly, and the bird shouldn’t expect to be able to survive underwater indefinitely. Instead, they should each make the most of the situation they’re in and focus on what they need to do to survive and get the most from their lives.
2. You don’t know what’s behind the scenes
When a friend or neighbour goes on a three-month vacation, that may have been a goal of theirs for years. They may have picked up a part-time job or cut back on other spending to save up. Alternatively, they may have borrowed the money to go, maxing out their credit card and sliding responsibility to their future self. When you see others spending, you likely don’t know the full picture. Even if you do, it’s important to remember point 1. Everyone’s situation is unique.
3. You’re likely seeing everyone’s best foot
When you see Instagram posts or chat with a friend about their new guitar, you’re likely exposed to the best part of their day. If you look around and see one friend that’s travelling, another friend with a nice car and several others with interesting hobbies, it’s critical to remember that no one’s doing everything. You can afford just about anything you can imagine, but you can’t afford everything.
You put in the hours at work to earn your money, not your friends or neighbours. Therefore, they shouldn’t have any impact on how you spend your money. Create a list of what satisfies you and assign your money from top to bottom. Make sure you’re putting away some money for the future so you can continue to spend on those activities throughout your life. With these two simple actions, you can spend your money stress-free today, while maintaining your lifestyle in the future.