October 12, National Savings Day.
Developing good savings habits is a big challenge for many people.
One of the most common traps people fall into is trying to “keep up with the Joneses.” When our friends, family, and/or neighbors are spending more than we are, we are tempted to go beyond our own means to match or surpass their lifestyle.
But buying luxury cars and nicer clothes, and splurging on expensive vacations can add up quickly and cripple our ability to save for the future and ensure financial security. When such a lifestyle becomes a habit, it can ruin one’s future.
There are many techniques one can implement to avoid the trap of trying to “keep up with the Joneses”. Here is Kevin Hart’s take on the problem.
- Why do you think we often fall into this trap?
- Competition with our peers in this sense tends to be more harmful than helpful, but could the opposite also be true? How?
- Do we need to avoid hanging out with wealthier people all together, as Kevin Hart suggests? Are there better ways to avoid the temptation to compete with our peers’ lifestyles? What might they be?
27, Sept. 2018, Cartoon depicting “Keeping up with the Joneses” [Digital image]. Retrieved from <google.com>.