{"id":1605,"date":"2019-12-10T13:57:00","date_gmt":"2019-12-10T02:57:00","guid":{"rendered":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2019\/12\/10\/beware-of-trying-to-keep-up-with-the-joneses\/"},"modified":"2019-12-10T13:57:00","modified_gmt":"2019-12-10T02:57:00","slug":"beware-of-trying-to-keep-up-with-the-joneses","status":"publish","type":"post","link":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/2019\/12\/10\/beware-of-trying-to-keep-up-with-the-joneses\/","title":{"rendered":"Beware of trying to keep up with the Joneses"},"content":{"rendered":"

It\u2019s human nature to compare ourselves with other people, at least to some extent. In the age of social media, we have more opportunity than ever before to do that. It can be a real trap on many levels.\u00a0<\/span><\/p>\n

\"\"\u00a0<\/p>\n

Many studies are emerging on the negative effects social media can have on your mental health<\/a>.But less attention has been paid to the negative impact it can also have on your financial health as well in our consumption-driven culture.\u00a0<\/p>\n

Here are four financial reasons why you shouldn\u2019t try and keep up with the Joneses, whether you\u2019re comparing yourself online or in real life.<\/p>\n

1. Perception isn’t necessarily reality<\/span><\/h3>\n

Material possessions can disguise\u00a0 a mountain of debt. Sure, your neighbour, friend or a family member might buy a flash new car or have a bigger house, but they also might be in a lot more debt than you are.\u00a0<\/span><\/p>\n

Interest rates in Australia are currently at record lows, but at the same time, <\/span>personal debt levels<\/span><\/a> are at a record high. That\u2019s a dangerous cocktail when interest rates eventually rise again.\u00a0<\/span><\/p>\n

Mortgage stress levels are already on the rise, even in the current low-interest rate environment.<\/span>According to the <\/span>Australian Bureau of Statistics<\/span><\/a>, you\u2019re in mortgage stress if you\u2019re spending more than 30% of your household income on\u00a0 home loan repayments.<\/span>And if you add a higher interest personal loan and\/or credit card debt onto a high mortgage, you can get into financial trouble even quicker.\u00a0<\/span><\/p>\n

2.\u00a0 You have your own unique circumstances<\/span><\/h3>\n

Trying to match the spending of other people without considering your own unique circumstances is also a potential recipe for disaster. For example, compared to the person (or people) that you\u2019re trying to keep up with in terms of buying material possessions, you might:<\/span><\/p>\n

    \n
  • \n

    earn less,\u00a0<\/span><\/p>\n<\/li>\n

  • \n

    be younger (and have had less time to accumulate the same level of wealth or possessions), and\/or<\/span><\/p>\n<\/li>\n

  • \n

    have more dependants and associated expenses that need to be a higher priority for you right now.<\/span><\/p>\n<\/li>\n<\/ul>\n

    3. It can be a never-ending spiral<\/span><\/h3>\n

    Comparing what you have to other people can result in you never feeling truly satisfied. Someone you know will always be buying something or planning a holiday. Life isn\u2019t a race. You can do things in your own time (and when you can afford it).<\/span><\/p>\n

    4. Money can\u2019t buy happiness<\/span><\/h3>\n

    It might be a clich\u00e9, but it\u2019s true.\u00a0<\/span><\/p>\n

    Spending to try and maintain or uphold an image won\u2019t necessarily make you happy. It can even end up being soul-destroying if you\u2019re trying to live by other people\u2019s standards rather than your own.\u00a0\u00a0<\/span><\/p>\n

    The bottom line<\/span><\/h3>\n

    It\u2019s important to set your own goals, including financial ones, and then put a plan in place to achieve them. The best way to get ahead financially is to live within your means. In other words, don\u2019t spend more than you earn. You can do this by developing a realistic budget and sticking to it.\u00a0<\/span><\/p>\n

    You should also make sure that you invest in income-producing or capital growth assets (like property or shares) while reducing the level of non-tax-deductible debt that you have.\u00a0<\/span><\/p>\n

    \u00a0<\/span><\/span><\/p>\n

    Source: Clientcomm library<\/span><\/em><\/p>\n

    Important note:
    This provides general information and hasn\u2019t taken your circumstances into account.\u00a0 It\u2019s important to consider your particular circumstances before deciding what\u2019s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.\u00a0 Past performance is not a reliable guide to future returns.\u00a0<\/span>Any general tax information provided in this publication is intended as a guide. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent.<\/span><\/p>\n

    \u00a0<\/p>\n

    Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business nor our Licensee takes any responsibility for any action or any service provided by the author.<\/span><\/p>\n

    Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents\/information contained within the linked site(s) accessible from this page.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    It\u2019s human nature to compare ourselves with other people, at least to some extent. In the age of social media, we have more opportunity than ever before to do that. It can be a real trap on many levels.\u00a0 \u00a0 Many studies are emerging on the negative effects social media can have on your mental […]<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-1605","post","type-post","status-publish","format-standard","category-general-articles","entry"],"_links":{"self":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/comments?post=1605"}],"version-history":[{"count":0,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/posts\/1605\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/media?parent=1605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/categories?post=1605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gpadviser.com.au\/gpl-theme-1-2015\/wp-json\/wp\/v2\/tags?post=1605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}