The cost of keeping up with the Joneses.
Keeping up with the Joneses cost cost you dearly and determine how you spend your retirement years. Life seems to be a competition to at least have a car or house which not only serves the person for which it was made for but makes a statement which says, I am at least the equal of the Jones’s.
So who are the Jones’s?
They are other people who have that fancy car, that nice house, that nice swimming pool, or that nice whatever that is the envy of others.
The bible says “Do not covet another man’s wife or belongings,” which is saying we should not envy another person’s lifestyle and I will tell you why.
Firstly, you do not know how hard they have worked for whatever they have or what kind of sacrifices they have made.
Secondly, for all you know, they may be up to their eyeballs in debt trying to compete with everyone else in the material rat race.
Thirdly, their income may be twice as much as yours. There is an old cliche which says, “Living a champagne lifestyle on a lemonade budget.”
Your spending and savings plan must be a reflection of your income level and that means to forget what others are spending their money on and focus on your own situation.
There are certain spending habits which will cost you thousands in the long run and they are;
1. BUYING ON HP
The interest payments on consumables bought on HP (Hire Purchase) will add up to a fortune during your lifetime. Interest is dead money; in other words, it is money you pay but do not receive anything for it.
2. CREDIT CARD USE
Interest rates on credit cards can be horrendous if you get behind on your payments. As with HP, interest is what you pay for the use of other people’s money. Greed and selfishness manifests itself in widespread credit card use.
3. BUYING STUFF BRAND NEW
A lot of consumer goods are bought brand new when you can purchase the same item second hand at a fraction of the price at a charity/second hand shop. The eco centre at your local tip also has low cost goods for sale at a very low price.
Many people are too proud to even set foot in these places because it is not in keeping with the image which they are trying to portray.
Trying to maintain an image during your lifetime will cost you dearly in the long term.