Wednesday WTF: Keeping up with the Joneses
Welcome back to Wednesday WTF. Today’s topic is the Joneses. We always hear how we shouldn’t try to “Keep up with the Joneses.’” Sounds easy enough right? Well, it isn’t! We all have ideas in our head about where we should be in life, what we should be doing, what kind of things we should have, etc. These feelings come from the world around us. What we fail to realize is that the world around us is straight f—ed up. Things aren’t always what they seem so it’s important that we don’t try to keep up with what might be a facade. As a financial advisor, I see it all the time. Delicious outside coating with a debt filled filling. Today I’m going to mention 3 things we all seem to think we should have, but maybe should think twice about.
1) A Car
In my opinion, someone should only own an automobile if it is completely necessary. When is it completely necessary? Good question. If you need to commute, if you have children, if it is for business or if you have mad money are the only reasons I can think of to have a car. Cars have become status symbols and many people I know try to justify owning them when they could go without one just fine. I personally would rather be house rich than Car poor, but that’s just me.
2) Owning a Home
It’s the Canadian/American dream. Home ownership for decades has been the pinnacle of success for many people. I always hear “renting is just throwing your money away.” That’s kind of true, but not really. No matter where you live it will cost you money. The money you spend on rent can be put into a mortgage, yes, but that isn’t the only cost associated with owning a home. There is property tax, insurance, extra heating/hydro costs, and maintenance. Repairs and maintenance alone can cripple you. Do you know how much a roof costs? They can go upwards of 20K. Simple things like water heaters and air conditioners can cost 5K or more. Now I’m not saying don’t buy a home. All I am saying is don’t get one just because you can. Make sure you are ready for everything it entails including having a juicy emergency fund for when that water heater blows up, cause it will.
3) Education
Education will set you free, but sadly it isn’t free. Coming out of school with massive student debts is crippling. I have friends that are over 35 years old and still owe their OSAP money. It has hampered them from buying a home, getting a car and many other things they want to do. I believe post-secondary education should be looked at as a business decision and not something you “have” to do. I believe everyone should further their skills through higher learning. That doesn’t necessarily mean that university should be everyone’s path.
The important message I want everyone to take from this post is that you should never do or get anything just because your friends or someone else is. A car, home or university are great things but aren’t for everyone. The important thing is to know yourself and understand your own timeline. There is no rush to do the things you want in life, you are your own master.
Tune in tomorrow for “Thursday Trim the Trash” when I discuss alternatives to keeping up with the Jones’ in those three categories. Have a great day friends!
“Never go to excess, but let moderation be your guide.” – Marcus Tullius Cicero
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Joseph James Francis is a Financial Advisor. You can find him on various social media platforms and at budgetboss.ca.