PERSONAL FINANCE THROUGH LIFE'S STAGES: Just WHO are the “Joneses”?

The phrase "keeping up with the Joneses" dates back to 1913, and began as the title of a comic in the New York Globe and other newspapers. The name "Joneses" was chosen by the artist, Arthur Momand, as it was a common surname that highlighted the common nature of social rivalry and image consciousness.

According to Momand's own account, he and his wife lived in Cedarhurst, New York, where the average income is still very high. "We were living far beyond our means in our endeavour to keep up with the well-to-do class." Fortunately, the Momands came to realise that they needed to change, as they were digging themselves deep into debt. They decided to move to Manhattan where they were able to create a more manageable lifestyle more suited to their means.

Reference: 1. "The Encyclopedia of Word and Phrase Origins" by Robert Hendrickson (Facts on File, New York, 1997).

We live in a society where there is a high degree of pressure to "Keep up with the Joneses." This is the desire to maintain an appearance of affluence and wealth and live far beyond ones means in an effort to impress others. Sadly, money has been put on a pedestal and is often associated with status. But who are the Joneses and how can they afford so much? Why should we live our lives in fear of what they think? No one really knows who the Jones' are but they always seem to set the pace for so many.

A 2005 study on attitudes and behaviours at various life stages, highlights the fact that today's young family life stage demonstrates a generational shift in personal attitudes towards debt - from the frugality and thrift of eras gone by, to self indulgence, instant gratification and a sense of entitlement. The influence of mass marketing has put additional pressure on young people to pursue immediate gratification over the traditional values of "saving for a rainy day". They are tempted to spend the little that they have and go into debt in an attempt to match the glamorous images and celebrity lifestyles that we are constantly exposed to in the media.

Appearances can be deceptive

Some people "appear" to be extremely wealthy, yet the outward appearance of affluence, often disguises huge amounts of debt. We are strangely competitive animals in a way that can be deeply destructive. Sometimes the acquisition of material possessions and an obsession with tying outer image to personal value and self worth seems to take precedence over freeing oneself from the burdens of debt.

Now there's absolutely nothing wrong with buying and owning nice things; enjoying life's little pleasures and indulging on occasion is an essential reward for hard work. What is of concern is our insatiable desire to impress others through our lifestyles. If you tend to spread yourself too thin financially to a degree where your current and future finances are in serious jeopardy, it is time to sit down and re-examine your motives.

Live within your means

Living beyond one's means has consequences, as extravagant lifestyles and debt often go hand in hand. Funding luxuries with debt limits your choices because one is constantly caught up paying for yesterday's impressions instead of securing tomorrow. Instead of building towards your dreams and the lifestyle you have deserve, your hard-earned money is fulfilling your lender's dreams. Yes, you may even impress a few people in the short term, but in the long run, you could be jeopardising your family's financial future.

I have observed over several years that acquiring and maintaining lasting wealth is a process which comes with discipline, consistency and commitment. There usually are no short cuts, but the extensive rewards over time, go beyond the thrills of today's image. People who seek to build a lasting legacy set specific goals and plan ahead to achieve them by saving and investing wisely; they also maintain a frugal mindset and cautious approach to spending; they do look for discounts, and they do budget.

It is important that you plan ahead for the future based on your own goals and values. Concentrate on your own journey with realistic expectations. If you are burdened with the responsibility of trying to keep up with the Jones's, please stop. The Jones's are trying to keep up with you.