We have all been guilty of it at one time or another and we’ve all been there. We see our friends or neighbors driving a new car, wearing a new outfit, or living in a new house and we start to feel the pressure to keep up. This social pressure can be very costly, both financially and emotionally. In this blog post, we will discuss the bad habit of keeping up with the Joneses!
Keeping up with the Joneses is a phrase that originates from a comic strip of the same name. The phrase describes the tendency to spend money on things that we don’t need, simply because our friends or neighbors have them. While keeping up with the Joneses may seem harmless, it can actually be a costly habit.
If we’re constantly buying new clothes, gadgets, and cars just to keep up with those around us, we can quickly find ourselves in debt. What’s more, research has shown that trying to keep up with the Joneses can actually lead to feelings of dissatisfaction and envy. So next time you’re tempted to buy something just because someone else has it, take a step back and ask yourself if you really need it. You might just save yourself some extra money in the process.
The Bad Habits That Cost You Money
1 . Impulse Purchases
We’ve all been there before. We see something we want – maybe it’s a new pair of shoes or the latest gadget – and we just have to have it. We make an impulse purchase, and before we know it, we’re regretting our decision.
Impulse purchases can be costly mistakes, but they’re also quite common. In fact, studies show that most of us are guilty of making them from time to time. But why do we do it?
Often, impulse buys are driven by a desire to keep up with the Joneses. We see someone else with a new toy or piece of clothing, and we want to have it too. Even if we can’t afford it, we justify the purchase by telling ourselves that we’ll find a way to pay for it later.
Of course, this is usually a bad idea. Not only does it put us into debt, but it also leads to buyer’s remorse when we realize that we can’t really afford what we’ve bought. So next time you’re tempted to make an impulse purchase, take a step back and ask yourself if it’s really worth it. You may be surprised at how much money you can save in the long run.
2 . Not Investing In Financial Education
At some point, we’ve all been guilty of keeping up with the Joneses. Whether it’s buying the latest gadget or driving a more expensive car, there’s always something that someone else has that we feel we need to have. However, one of the most costly things you can do is to not invest in financial education. Just like keeping up with the latest trends, keeping up with your finances can be difficult and time-consuming.
However, it’s important to remember that your financial situation is unique to you. What works for someone else may not work for you, and vice versa. By not investing in financial education, you’re missing out on valuable information that could help you make better decisions with your money. In addition, you’re also likely to incur more debt and fees as a result of making poor financial choices. So next time you’re tempted to keep up with the Joneses, remember that the real cost of keeping up may be much higher than you think.
3 . Social Media Binging
If you find yourself mindlessly scrolling through social media for hours on end, you’re not alone. In fact, according to a recent study, the average person spends nearly two hours every day on social media sites like Facebook, Twitter, and Instagram. But while social media binging may seem like a harmless way to kill time, it can actually have some pretty serious consequences. For one thing, it can cost you money.
Whether you’re wasting time at work or racking up expensive data charges by streaming videos on your phone, all that time spent on social media is costing you cold, hard cash. But the financial effects of social media binging are just the tip of the iceberg. The real cost is the opportunity cost of all the other things you could be doing with your time. Instead of catching up with friends or spending time on hobbies, you’re mindlessly scrolling through your feed. So next time you find yourself opening up Facebook for the hundredth time that day, ask yourself whether it’s really worth it. Chances are, it’s not.
4 . Purchasing Home As A Liability
The purchase of a home is often hailed as the quintessential American dream. And while there’s nothing wrong with owning a roof over your head, it’s important to remember that a home is not an investment. In fact, when you buy a home, you’re actually incurring a liability.
The value of your home depends on factors completely out of your control, such as the economy and the housing market. What’s more, you’re responsible for all the costs associated with maintaining your property, from repairs to taxes. In contrast, an investment generates income or appreciates in value over time. So before you sign on the dotted line, be sure to ask yourself whether you’re really ready to take on the responsibility of owning a home.
5 . Travelling With Rich Companions
You know what they say, “Birds of a feather flock together.” And when it comes to money, that saying couldn’t be more true. A recent study found that people are more likely to spend money when they’re around others who are also spending. So, if you’re trying to save money, it might be time to reconsider traveling with your wealthy friends.
Of course, there’s nothing wrong with enjoying the occasional luxury while on vacation. But if you find yourself constantly shelling out cash just to keep up with your wealthier companions, it’s time to have a talk. Maybe they’re not aware of how their spending is affecting you. Or maybe you just need to set some boundaries. Either way, it’s important, to be honest about your financial situation and make sure everyone is on the same page before booking your next trip. After all, a vacation should be about making memories, not breaking the bank.
6 . Paying Your Credit Card Bills Late
If you’re like most people, you’re probably not in the habit of paying your credit card bills late. But if you are, it’s important to know that there are consequences. Late payments can damage your credit score, which can make it harder to get loans and credit cards with favorable terms in the future. They can also result in late fees, which can add up quickly. And if you’re really late on a payment, your card issuer may even raise your interest rate. So if you’re not already in the habit of paying your bills on time, now is the time to start. It’s a bad habit that costs you money.
7 . Buying Branded Products
Do you have a bad habit that costs you money? For many of us, the answer is yes – we buy branded products instead of generic ones. Branded products often come with a hefty price tag, and while they may be of higher quality, the truth is that in many cases generic products are just as good. The next time you’re at the store, take a closer look at the generic products on the shelves – you may be surprised at how much money you can save by making the switch.
8 . Unused Subscriptions
Chances are you’re throwing away money every month on unused subscriptions. Whether it’s a gym membership you never use or a streaming service you forgot you had, those monthly payments can add up quickly. In fact, the average person wastes $237 a year on unused subscriptions, according to a recent report. The good news is that there are a few easy ways to put a stop to this bad habit.
Start by taking inventory of all the subscriptions you’re currently paying for. Then, take a close look at your bank statements to see which ones you’re actually using. Finally, cancel any that you no longer need or want. It may seem like a small change, but it can make a big difference in your budget. So don’t wait – start saving today!
So what can you do to break the Joneses’ effect on your budget and live a richer life? First, be honest with yourself about why you want certain things. Are they really worth the financial sacrifice? Second, find ways to enjoy life without spending money. Spend time with friends and family, get outside, or take up a hobby. Finally, remember that it’s okay to have some nice things – as long as you can afford them. Just don’t let the Joneses dictate your entire lifestyle! How do you resist the pressure to keep up with the Joneses? and did you know these bad money habits can keep you broke forever?