The Joneses Are Your Enemy

Photo by: Chapek Sergey
Probably the most self-destructive thing that a person can do for their financial future is to pay undue attention to what those around them are doing. Obviously this has limits, but using your friends, family or neighbors as benchmarks for “success” can manifest itself in many ways and almost all of them can sabotage your financial progress. You should always remember that what a person presents as their situation can be very different from their true situation. Let’s look at some ways the Joneses can sabotage you.
Status Symbols
Typically when talking about “keeping up with the Joneses” we’re referring to buying status symbols. Maybe your neighbor bought a new BMW, and it sure looks nice. Or maybe you’d like to host the football watching party sometime, but your TV just doesn’t match up to your friends’. These types of situations can inspire us to make purchasing decisions that may provide a short-term high for a lot of pain.
Almost all status symbols are depreciating in nature. Your car and that new TV are going to lose their value over time. The more purchases like that you can avoid the better your financial future is going to be. This isn’t really very tricky, and most of us are aware of this, even if we don’t always follow through.














