Do you need to "Keep up with the Joneses"?

Discussion in 'Investor Psychology & Mindset' started by Blueskies, 1st Sep, 2017.

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  1. Blueskies

    Blueskies Well-Known Member

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    For those unfamiliar with the expression, it means the need people feel to compete financially with their peers or Neighbours.

    It must have some deep evolutionary basis, competition for resources or mating displays or something, but I am forever amazed at the way people need to spend money on things primarily for status or image. It seems to cross all levels of society.

    I believe one of the best things anyone can do is break away from this cycle. I would say I almost always make purchases based on the pleasure that thing will bring me or it's utility or practicality not some need to show off to others. I am not talking about being cheap/stingy, just focussing on what is important to you rather than wider society.

    Some examples from the top of my head:

    - People will pay tens to hundreds of thousands of dollars more for a house which happens to sit in a different suburb or Council boundary. In some cases two identical houses on opposite sides of a road in different councils will have huge price differences. Why? They both have all the same amenities functionality etc it's purely a status thing.

    -New housing estates. People continue building bigger and bigger houses on smaller and smaller patches of dirt even when they may have a very small family unit. For those with young ones, I'm sure their kids would rather more than a postage stamp of grass than a butlers kitchen and 3rd bathroom. What is the point?

    - Cars: I work in an environment with a lot of blue-collar workers. So many of them buy brand new dual cab utes and four wheel drives for prices exceeding their annual pre tax salary on high interest credit. Same goes for boats and jetskis. I am sure in all cases the same practical outcomes could be achieved buying vehicles for half the price, I don't get it?

    Clothes/fashion: I simply do not understand designer clothing. Maybe I am just lacking the necessary culture, but I just can't see the difference between what you get at Kmart/bigw and what you buy and Myer or designer clothing shops.

    I could list many more, there are examples across pretty much all things people spend their money on. Again, I have no problems with expensive purchases if it is a genuine passion or need, but so often it seems to be driven by conforming to an expectation of society or "showing-off" to others. At the end of the day there will always be people who have more than us but also a vast percentage of the worlds population with far less. I think true happiness comes when you can step back from the whole thing and just focus on what is important to you.
     
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  2. Angel

    Angel Well-Known Member

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  3. Beano

    Beano Well-Known Member

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    No ...not with the Jones but as a teenager we (brothers) did work to keep up with each other ...he brought one I brought 2 other brother brought 3 :)
     
  4. Konn

    Konn Well-Known Member

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    meh, let people do what they want
     
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  5. KayTea

    KayTea Well-Known Member

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    I would like to be able to, and often feel like I should look as though I have more to show for over 20 years of bloody hard work, but I don't actually do the things you've indicated.

    I hate my PPOR and certainly don't wear designer clothes. However, I'd like to be in a position to have the choice.
     
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  6. skater

    skater Well-Known Member

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    No, it's never once been something that I'd strive to do....I'd rather buy houses and secretly know that the 'Jones' should be trying to keep up with me.:D
     
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  7. HomePage

    HomePage Well-Known Member

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    No, and that is why the Joneses still need to work and I don't!
     
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  8. Ouchmyknees

    Ouchmyknees Well-Known Member

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    No. And the Jones think it is sad as they never feel inadequate enough to compete with the neighbour.
     
  9. Biz

    Biz Well-Known Member

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    Yes, sort of. I like having a nice house, car and clothes. I don't do it to keep up with anyone but I have worked long, hard at times and taken many risks. I don't care about retiring on a set amount by a set date. I believe wealth creation is about the journey holistically and enjoying the fruits along the way.
     
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  10. Blueskies

    Blueskies Well-Known Member

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    Fully agree, it is not about frugality, more what is the motivation behind it. If you are passionate about fast cars and you've worked hard, why not reward yourself, but if you feel your neighbour has an Audi so you should have a BMW, that's what I don't understand.
     
  11. DaveM

    DaveM Well-Known Member

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    No. Couldnt care less. I like some nice things eg im a car and hifi person, but I buy them because I want them not out of any need to compete with anyone.
     
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  12. skater

    skater Well-Known Member

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    LOL! I couldn't care less about cars & hi-fi's.....but I'll pay thousands of $$ for a pair of roller skates!
     
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  13. DaveM

    DaveM Well-Known Member

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    Given how tall you are, maybe a low-fi is more suitable?
     
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  14. peastman

    peastman Well-Known Member

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    Quite often what looks like "showing off" actually does give the owner pleasure and is worthwhile.
    I have some high end toys and cheaper ones would do the job, but nowhere near as much fun.

    My brother in law struggles a bit financially, but got an inheritance and went out and bought a motor-home. At the time I thought it was not a good idea, but they use it constantly, going away for months at a time. The reality is it has worked out a very well for them as a way to holiday cheaply.
     
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  15. Scott No Mates

    Scott No Mates Well-Known Member

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    I've worked for some very aspirations brands and still buy them. Why? Because I can, not because the next person has one.
     
  16. Marg4000

    Marg4000 Well-Known Member

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    Not always.

    It can be the difference between being in a top school catchment area and a less desirable area. This can make a big difference in value.

    And whether you like it or not, the suburb or council area a property is in does affect value and resale opportunities. Paying the extra can be a sound financial decision, and nothing to do with snobbishness or "keeping up".

    Hence the long standing and sound advice to buy the worst house in the best street, rather than the best house in the worst street.
    Marg
     
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  17. MTR

    MTR Well-Known Member

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    Sibling rivalry, are you still friends??
     
  18. MTR

    MTR Well-Known Member

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    I could not care less what others have. More important to be happy with what you have and who you are.
     
  19. WattleIdo

    WattleIdo midas touch

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    I'm paying what I consider to be a high rent and live in a cool suburb when the next suburb down would do just as well and cost a lot less and probably have a fence for my dogs! On the other hand, there's a garden area across the road that leads into a large bush area. I walk there with the pets every day.
    I know I spruik living within your means and the miilionairre next door and all that, but sometimez it's really nice to live in a garden/bush setting with nosey neighbours.
    I dislike the Joneses and their hangers-on but every-so-often I like to be part of the crowd.
     
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  20. Joynz

    Joynz Well-Known Member

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    To the people with school aged kids: how do you fare with their requests to have the kinds of brands their peers have?