| Consumer instant gratification can prove risky | | |  | WED, OCT 02, 2019 | | | | Why, oh why are people always trying to keep up with the Joneses? This need to get all the stuff our neighbors have is an never-ending problem and to fail to keep up with them is perceived as socio-economic inferiority.
In reality, it's a recipe for disaster.
When we try to keep up with the Joneses, we're not actually looking to match our lifestyles to the 1% of Americans who can afford private jets and a summer home in Tuscany. We're just comparing ourselves to our neighbors — most likely the people who look just a little bit wealthier than we do. If we somehow had access to their bank accounts and credit card statements, we might have a different opinion of these people.
Here's the bottom line: Many Americans live beyond their means. Instant gratification has created very bad financial behavior and that has resulted in Americans facing a great deal of debt. Chances are good that those neighbors you're looking to keep up with are also living beyond their means.
So, the next time you're about to make that big purchase – especially one that will put you deeper into debt – take a minute to ask yourself some questions. Are you purchasing this item or service because you really need it? Or, are you doing it for appearance?
If your answer is that you just want to look more financially successful, then you need to avoid spending that money. It's a good step forward in learning how to live within your means.
For more cool stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. | | Here's how to best invest in your employer's stock | | Some companies are coming up with new ways for employees to invest in their stock. Whether you have access to stock options, restricted stock or an employee stock purchase plan, you can build wealth through these plans. But as with all investments, beware the risks. | | | | | | Congraduritos | | "Peter Boockvar: 'Bottom line, we have now tariffed our way into a manufacturing recession in the U.S. and globally. What's the strategy now?'" | | | |
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