The Real Cost of Keeping up with the Joneses! (Part 1)

How to Set and Reach Financial Goals

It’s true that keeping up with the Joneses can be a very exhilarating experience for some people. However, it can also come at a very dear cost, often leading to financial stress and instability. By understanding the true implications of trying to keep up with others and adopting a proactive approach to financial planning, you can regain control of your finances and work towards achieving your long-term objectives. Let’s discover together the key steps to setting and reaching financial goals that are aligned with your values and priorities.

What Exactly Does it Mean to ‘Keep up with the Joneses?

Keeping up with the Joneses is an idiom in many parts of the English-speaking world referring to the comparison to one’s neighbor as a benchmark for social class or the accumulation of material goods. To fail to “keep up with the Joneses” is perceived as demonstrating socio-economic or cultural inferiority. The phrase originated in a comic strip of the same name.^[1][2]

The Dangers of Financial Comparison – Emotional and Financial Repercussions

Financial comparison can be a double-edged sword, seeing that it can have both emotional and financial repercussions. While it is natural for individuals to compare themselves to others in various aspects of life, such as career achievements or personal relationships, comparing one’s financial situation to that of others can definitely lead to negative outcomes. Here are some of the dangers associated with financial comparison:

1. EMOTIONAL DISTRESS

Comparing one’s finances to others is likely to trigger feelings of envy, inadequacy, and low self-esteem. Seeing others’ apparent financial success can create a sense of pressure to meet societal expectations or keep up with a certain lifestyle. This may result in emotional distress, anxiety, and a constant feeling of dissatisfaction with one’s own financial situation.

2. UNHEALTHY COMPETITION

Engaging in constant financial comparison could possibly lead to an unhealthy sense of competition with others. It can fuel a desire to outdo or surpass others’ financial achievements, which may lead to reckless behaviour, such as taking on excessive debt or making impulsive financial decisions to keep up with appearances.

3. MISALIGNMENT WITH PERSONAL GOALS 

Each individual has unique financial goals and circumstances. Comparing oneself to others can undermine personal financial objectives and lead to misguided decisions. It’s essential to remember that everyone’s financial journey is different, and what works for one person may not be suitable for another.

4. IGNORING INDIVIDUAL PROGRESS 

Financial comparison often focuses solely on external markers of success, such as income, possessions, or material wealth. This narrow perspective disregards individual progress, personal growth, and non-monetary aspects of life that contribute to overall well-being. Neglecting these aspects can lead to a skewed perception of success and happiness.

5. FINANCIAL IMPRUDENCE 

Comparison can create a sense of urgency to acquire more wealth or possessions without considering the financial consequences. People may be tempted to engage in risky investments, overspend, or accumulate debt to match or exceed others’ financial achievements. This behaviour is liable to lead to financial instability, stress, and long-term financial repercussions.

 It is important to recognise that each individual’s financial journey is unique, and success should be defined based on personal values and aspirations rather than external benchmarks. By focusing on our own financial well-being, setting realistic goals, and prioritising personal growth and fulfilment, we can build a more stable and fulfilling financial future. It is crucial to approach financial matters with mindfulness, self-awareness, and a balanced perspective that prioritises our own financial health and overall well-being.

Setting Realistic Financial Goals for You and Your Family

Setting realistic financial goals for yourself and your family is crucial for creating a stable and prosperous future. Here are some steps to help you establish practical and achievable financial goals:

1. ASSESS YOUR CURRENT FINANCIAL SITUATION 

Begin by evaluating your current financial standing. Take stock of your income, expenses, assets, liabilities, and savings. This analysis will provide a clear picture of your financial health and serve as a foundation for setting goals.

2. IDENTIFY SHORT-TERM AND LONG-TERM GOALS 

Divide your financial goals into short-term and long-term categories. Short-term goals typically cover a period of one year or less and may include building an emergency fund, paying off a specific debt, or saving for a vacation. Long-term goals encompass milestones that extend beyond a year, such as retirement planning, saving for a down payment on a home, or funding your children’s education.

3. MAKE YOUR GOALS SPECIFIC AND MEASURABLE 

Ensure that your goals are specific and measurable to track your progress effectively. For example, instead of setting a vague goal like “save money for retirement,” specify the target amount you want to accumulate and the timeline in which you plan to achieve it.

4. PRIORITISE AND RANK YOUR GOALS 

Determine which goals are most important to you and your family. Rank them in order of priority and feasibility. This will help you allocate your resources and focus your efforts accordingly.

5. SET REALISTIC AND ATTAINABLE GOALS 

It’s important to set goals that are realistic and achievable within your current financial circumstances. Consider factors such as your income, expenses, and other financial obligations when establishing your targets. Setting overly ambitious goals may lead to frustration or financial strain, while setting goals that are too easy may not provide the motivation needed for progress.

6. BREAK GOALS DOWN INTO ACTIONABLE STEPS

Break down your goals into smaller, actionable steps. For example, if your goal is to pay off a specific debt, determine how much extra you can allocate toward debt repayment each month and create a budget to support this objective.

7. CREATE A TIMELINE

Establish a timeline for achieving each goal. This will provide structure and help you stay on track. Be realistic about the time required to reach your goals, considering factors such as income growth, investment returns, and other financial variables.

8. MONITOR AND ADJUST 

Regularly review your progress towards your goals and make adjustments as necessary. Life circumstances, financial situations, and priorities may change over time, so it’s essential to adapt your goals accordingly.

9. SEEK PROFESSIONAL ADVICE 

If needed, consider consulting with a financial advisor who can provide guidance and help you develop a comprehensive financial plan. They can offer personalised insights and strategies based on your specific goals and circumstances.

10. CELEBRATE MILESTONES

Celebrate and acknowledge your achievements along the way. This will help you stay motivated and maintain a positive mindset as you work towards your financial goals.

Remember, setting realistic financial goals requires a balance between ambition and practicality. By following these steps and consistently working towards your objectives, you can create a solid financial foundation for yourself and your family.

Tune in for Part 2 as we educate you on the right tools and timelines to help you track your goals.