Most of Us Spend Money for the Wrong Reasons.
I'm going to stop being the nice guy with the money.
I almost used up $12,000 of my savings to stay for 3 weeks in Florianopolis, Brazil. One of the best cities for tourists in South America.
Well, I speak Portuguese well, and most of the people I follow on Instagram are from Brazil maybe because Brazil has good food and beautiful women. Not to mention that these people love to stay in other people’s countries too.
I know you know that feeling. Your friends and acquaintances on social media are always better, cooler, and richer than you.
I experienced this firsthand a few days ago.
I’ve never been a big fan of cars. But that suddenly changed. When I saw people my age on social media driving Mustangs in foreign countries. Well, you just have to see someone you know personally drive one of these cars in someone else’s land. You will feel that you are not enjoying life. The way one should live.
After all, living is not just about working, making money, and doing nothing else.
I’ve never had a great interest in cars, and I’ve never felt compelled to spend a lot of money on sleek bodies, great accessories, and polished alloy wheels.
But when I went on Instagram one night and saw someone I know posing in front of their new Mustang in alien lands, I was immediately intrigued:
How much did the Mustang cost?
Is it a new car?
How much does he have to earn to be able to buy this car?
Did he win the lottery or inherit?
And why don’t I have a new Mustang?
All these questions came in seconds. Then I thought clearly, none of my questions were important.
We know in real-time how cool, fun, and luxurious our friends and acquaintances live.
What we don’t know is everything else.
How much time did you save for the trip, the $ 3k shoes or the new Mustang?
Did you go into debt to have a nice balcony or are you giving up other things for it?
The answers to these questions are ridiculous.
I try to see social media for what it is. It’s filtered information from people in their lives. This filtered information should not be a parameter for my life and financial plan.
I’m sure you know those coworkers who can somehow afford it all. But not you, even if you earn so much money.
As is known, we see only half the truth and important parts of the puzzle remain hidden.
What you should know is that all history has gaps.
You see a chic car. I see bills to pay.
The car we drive says a lot about us. Whether or not we have enough money to brag about.
Because we radiate who we are or what we want to be, it’s natural to get a vehicle that underscores someone’s status. Or increases the status.
Thanks to financing, it is really easy to buy more “upper class” than the “middle class” can afford.
Not only that, a car loses value quickly. It can consume much more money over the years of use than it originally cost.
It’s nice to look at. This is what we see and should see from the outside.
You see a sophisticated lifestyle. I see debts.
No one can afford a luxury lifestyle. Because a high lifestyle means: living beyond your means.
The solution: funding. Everything can be financed.
Financing is provided until you just go to work for it. Here the mast was reached: now the person has finally become a slave to the illusion of consumption.
You see a chic house in Los Angeles. I see a big mortgage, a lifetime of work, and family support.
Our society values home buying very highly. This is everyone’s desire.
Owning a home is a huge expense and a lifetime commitment. You need to work for it.
Costs can go beyond the actual purchase price. If you take into account equipment, repairs, fees, taxes, interest, and especially the time invested in their own work.
Many families do not have the financial means to cope with such a large project on their own. Parents and grandparents usually provide financial support.
When asked how the “middle class” manages to afford their own home, the answer is often: with sacrifices, loans, personal contributions, and the help of family members.
I’m not saying owning a home is a bad thing. But for most families it is a huge effort that is not easy to master and, above all, it is not in the short term.
You see the perfect life on social media. I see a lot of pressure to be perfect
My life is amazing. I want everyone to think I’m leading a movie Life.
But there are the bumps we like to cover.
It can be quite stressful and take a long time to keep up. Always have the best of the best. Better than the neighbors. Higher than the others have already climbed. Faster than the fastest.
It seems that everyone knows at least one person who is good at keeping up appearances.
Believe me, I see box extracts shaking their heads and rolling their eyes every day.
And you may have made one or the other wrong decision. If so, then you do not have to be ashamed of it.
We’ve all received kind but devastating advice from a loved one or decided out of ignorance, shame, or fear.
The most important thing is not that you made a wrong decision, but what you learned from it and how you will use this knowledge to make your next decision.
I see people going back to school without a plan to make more money.
Here’s the thing about a high school diploma. Certain jobs require it. Here you should go back to school.
Everyone else should think about what they want to do in school even before they spend a lot of money on it and retire a few years from working life.
You may be more successful looking for relevant work experience or specializing in a field, rather than seeing your high school diploma hanging on the wall after a few years.
Bottom line.
I see people who spend a lot of money not to lose anything. This is already a wrong motive.
Some people sink into a deep financial hole saying yes to anything and everything.
Especially if they get into overdraft or credit card debt for it.
No matter how perfect everyone’s life seems on Instagram, I can safely say that most of their friends struggle to afford some posts they’ve made.
Or they have been saving for some time to be able to afford this luxury.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.