Yahoo Finance Article Featuring Greg Luken
You Feel the Need To Document Every Extravagant Purchase
According to Maitre, feeling the need to document your extravagant purchases, vacations and meals can be an indicator that you feel the need to advertise your wealth rather than savor it.
“If you are regularly posting about your extravagances — are you spending for likes or personal satisfaction? If the likes bring you more joy than the experience, it may be time to reprioritize your spending,” she said.
You Wait for Your Paycheck To Hit Before Paying Your Mortgage
If you have a mortgage you struggle to pay, that could be a key sign you’ve spent more than you can afford on a home.
While it is ideal to own a home in a great school district with a guest room, Maitre said you should think twice before assuming a mortgage that is more than 25% of your take-home pay.
“There may be alternative options that do not put you at risk of foreclosure,” she said.
You Prioritize Purchasing Instead of Saving or Debt Management
“If your credit cards are racking up interest while you’re sitting on a beach at a luxury hotel in Turks and Caicos, you may need to reprioritize your spending,” Maitre said.
This could be a key sign you’re spending more than you can afford to keep up appearances.
“While it is important to treat yourself every now and then, doing so in such a lavish manner can quickly deplete your savings,” she said. “If you have high interest credit card debt or loans, it would be wise to pay these down before indulging.”
Advice To Stop the Comparison Game
“If we take our eyes off our own financial goals it’s easy to try to fit into something we don’t really, at our core, want,” Luken said. “The antidote for Keeping Up with the Jones is what I call Power of Purpose — knowing our deep why and vision for the future.”
He said remembering you want to retire to a beach house will help you decide if you really need that new sports car. “The Power of Purpose keeps us focused and counteracts the distraction of Keeping Up With the Joneses,” he said.
To break free from this detrimental mindset, Kevin Shahnazari, founder and CEO of FinlyWealth, emphasized reflecting critically on your spending habits.
“Ask yourself whether your purchases genuinely enhance your life or merely serve as a facade for social acceptance,” he said. “A powerful reminder is that ‘Comparison is the thief of joy.’ By prioritizing personal values over societal expectations, you can cultivate a more fulfilling and financially sound lifestyle.”
Read the full Yahoo Finance Article HERE
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