I Want To Keep Up With The Joneses
Posted on March 28, 2006 by Him and tagged friends
Another fine mantra of pfbloggers is "don't keep up with the Joneses." The pfblog community as a whole loves to assume that the Joneses are debt ridden, know nothing about finances, have flashy and glamorous stuff, have nothing to save for retirement, and have no emergency fund.
But what if the Joneses are doing everything right?
One of my roommates in college is now very successful. I've never seen him use a credit card. While he may not know what "beta" means in terms of mutual funds, I'm sure that his retirement accounts are well funded. He has a nice SUV that he paid mostly cash for, shares a huge apartment in the heart of the yuppiest neighborhood of Chicago, goes on vacation a couple times a year, and regularly buys everyone rounds at the bar. This behavior isn't atypical for my group of friends.
If that's what the Joneses are doing, why wouldn't I want to keep with them?
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Yeah, but without actually sitting down and talking with him about finances, you'll never know if he's overspending or not. Behaviors can be misleading.
I think it's all in the wording. "Keeping Up" to me means that you don't have means to but tries to imitate the behaviors and lifestyles of the Joneses. However, learning from them on how they achieve their success is totally different and I have no problem with that.
The term means trying to maintain a lifestyle you desire, but can't really afford. Usually this translates into accumulating material goods to reflect one's wealth and success. Your friend may be doing everything right, spending smartly while saving for the future. If that's the case, there's nothing wrong with aspiring to keep up with him. If not, then you probably wouldn't want to be him. Just stay focused on your goals, and don't bow to the pressure to live like the Jones' if you're unable to.
Slim | Nov 24, 2006
Do really know this guys financial status, do you know that he paid cash, or is that what he told you...
Don't envy the unknown my friend....
Either way....he's wasting cash....
Miserly Bastard | Mar 28, 2006
One of my favorite expressions is to describe somebody as a "forty thousand dollar a year millionaire." Unless your friend shares his finances with you, you probably dont know the true extent of what he can afford.
Even if your friend can afford this lifestyle, the next question is how much money he makes. If he is an investment banker, but you are a schoolteacher, it does no good for you to envy that lifestyle--you'll never have it, unless you change careers.
I think the point about "keeping up with the Joneses" deals more with leading a life where consumption is the source of your satisfaction. This is a dangerous trap, particularly if you dont have the income to support it.
Personally, my wife and I take great pleasure in our financial independence. That knowledge is worth far more to me than having a new SUV, or buying the drinks on Friday night
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