Social media - the land of perfection. In this day and age of curated online personas, not only are we faced with unattainable standards of beauty and success we’re also subject to another carefully constructed illusion: that of impossible wealth. Celebrities dripping in diamonds, CEOs on yachts, jet-setting influencers and 20-somethings owning luxury villas.
But it’s not just them, is it?
We see our friends buying new clothes every weekend, partying and brunching.
We’ve got jet-setting family always on holiday, planning a holiday or talking about going on holiday.
Our colleague Casey just rolled in to work in a brand new Mercedes; and,
Our neighbours, Nancy & Drew, are getting a pool put in.
Everywhere we turn we see a manner of living that we cannot fathom and we think:
How can all these people possibly afford these lifestyles?
Absolutely no one should be ashamed of sharing their happiness with the world or enjoying their success. Be it luncheons, holidays or other accomplishments, financial or physical, curated or actual, live and let live.
But, we as individuals need to realise that personal finance is nuanced. That the vast majority of our peers are trudging along with little to no thought of future financial stability or success, and everyone’s situation is different.
Those who you think live extravagantly, may be living off credit. Another cohort might be living paycheck to paycheck not caring about savings. Your coworker Casey would rather have their parents than an inheritance, and Nancy & Drew might just be bloody good savers, eating rolled oats every morning.
Cracking the illusion of wealth
I can tell you that those who you think have heaps of money, are often carrying debt. Just because someone is wealthy, it doesn’t mean they’re immune from over-extending themselves. And, just like for the rest of us, one decent-sized financial setback could bring everything tumbling down.
Someone with two or three properties is likely carrying the same number of mortgages.
With a nice property comes the necessity of having a nice car and, therefore, an expensive lease.
Living in a nice neighbourhood may mean sending your children to private schools.
Being surrounded by people of wealth means spending more to fit in.
Expensive hobbies begets expensive habits.
I am not begrudging the wealthy! Not at all. All I’m trying to say is that while many people are successfully wealthy without being overleveraged, they are far fewer than anyone would think.
True financial success
While the constant bombardment of seemingly effortless wealth may leave us feeling financially inadequate, we must figure out what true financial success means to us. We have to shift our focus, avoid comparing ourselves to others and ensure we get out of the “instant noodle reality” but “million-dollar dreams” state.
True financial success doesn’t have to be the size of your bank account or the weekly bottomless bubbles. It can simply be knowing that you’re making the right financial decisions right now to achieve financial security later (whatever that means for you).
If it’s saying no to brunch, buying a beat-up Toyota or skipping that ski holiday to Japan that all your friends went on (sorry guys - next year!), unabashedly do what you have to do to make sure you’re securing your financial future.
Because no one else is going to do it for you.
What do I do?
I always prioritise my needs over wants.
When I do spend money on wants, I choose to spend it on memories, not stuff.
I try to speak openly about finances, to share realities and to break illusions.
Final thoughts.
If you see me posting pictures of my holidays, remember what you don’t see.
You don’t see my budgeting, coffees at home, conscious spending or active investing which allow me to secure my future so that I can then spend money making memories.
Like it, love it, hate it? Drop me a comment or a question!