Why Keeping Up With the Joneses Is Keeping You in Poverty

From our earliest years, we learn to compare ourselves with others. We strive to fit in with the crowd and not be the odd one out. When we were children, this meant keeping up with the latest toy or clothing trend. As adults, it’s keeping up with the Joneses and appearing successful, wealthy and happy. But in the end, this obsession to keep up with those around us can cause financial ruin. It is important to explore why keeping up with the Joneses is what is keeping you in a short-term and poverty mindset instead of allowing you to focus on the future and growth. It is better to be healthier and wealthier than the Joneses than to maintain an image that you can do and afford the same things as them. Here are a few thoughts on what it means to keep up with the Joneses and the implications of doing just that.

High Social Expectations

Keeping up with the Joneses amounts to a social competition without any real substantial investment. The expectations the culture has on individuals or families to meet the social norms are quite high, especially in America. The unspoken rule of competition to have the biggest house, car, or fanciest clothes leads to scorning and sometimes discrimination of those who don’t meet those social “norms”. The financial culture puts an undue burden on people that they don’t want to be left out of the race. The ironic thing is that while most attempt to keep up, it keeps them stuck in a financial position that never allows them to grow beyond those financial means.

“There is a lot of pressure to appear successful, to buy a certain house or a certain car, or take fancy holidays, or own luxury items, which has led to a culture where a lot of people live paycheck to paycheck.” — Marilyn Hallett

Struggling to Save

When people compare themselves to others, they often choose to measure their financial well-being by what they observe around them. By observing and comparing their lots to others, people are tempted to keep up the false appearance of having what those around them seem to have. This false sense of financial well-being causes individuals to take unnecessary loans with high-interest rates, maxing out their credit cards or constantly leveraging a credit card. To satisfy this insatiable desire to meet a high standard of living, expenses are incurred which may take months to repay, leading to the inability to save or invest.

According to the Federal Reserve, about 43% of Americans can’t afford a $400 emergency expense without borrowing from someone or using a credit card, meaning saving is a far off dream for many Americans. That also means that nearly 50% of all people that you compare yourself to fall into that same category. Just because someone is driving that sports car or luxury vehicle does not mean they are better off financially. For some that is the case, but the goal here is to be able to actually afford these luxuries, not just appear that you can.

Brainwashed into Consumerism

Advertising and social media in our culture has led consumers to compare their lives with others, thus creating the Haves vs. the Have Nots. Social media has exacerbated this. By comparing peoples’ lives through media, individuals naturally find themselves wanting more than what they have or thinking they are behind the curve. I am guilty of this as well. When they buy what people advertise or showcase, the cycle repeats itself. The mental penalty we put on ourselves for believing we don’t have what other people have is anxiety and depression, leading us to live a lifestyle that cannot be sustained.

Financial Implications

Many behaviors that individuals personify in trying to maintain a high social status often leads to financial burdens. The goal here is to add to our assets, not our liabilities. The reality is that more than half of people who are living that lifestyle cannot maintain it either. In the long run, instead of growing their wealth, they end up struggling to make ends meet due to the lifestyle and choices they made. They begin canceling subscriptions, reducing medication use, stop taking health supplements, withdrawing their children from activities or cutting back on groceries, leading to even more health, mental, and financial strain in the long run.

“Don’t live beyond your means. Don’t buy more than you can pay for. Don’t expect to get rich quick. And don’t confuse salesmen for friends or advisers.” — Charley Reese

Comparing yourself to others and keeping up with the Joneses may appear safe in the short run but in the long run it spells financial ruin for many. The idea of keeping up with the Joneses and creating a need for social status causes an ever-growing void because while you may physically have what others have, you may not have enough capital to sustain it or grow your wealth. It’s better to put effort into an actual improvement to one’s life over merely ‘showing’ an increase in wealth by material standards. It is difficult to avoid artificial competition, but by doing so can lead to more mental and financial health. Living for and within your means is a far better investment than living to compete with anyone else, most of whom do not even care about you anyways. Protect yourself by trying to avoid comparing yourselves to others; it can steal your joy and render you emotionally volatile. Life is a marathon, not a sprint. The goal is to keep moving forward and taking small steps towards financial freedom. Hitting continuous, little milestones will lead to growth.

This is not financial advice. For educational purposes only. Before making any financial decisions, consult with a professional.