Trying To Keep Up

Let's talk about saving money and and why trying to keep up with the the crowd is a losing proposition. Trying to keep up with the the crowd is one of the biggest reasons we can't get ahead, and as long as we keep doing it, we spend ourselves into a deeper hole.

This is how it works. Someone you know, let's call them the Joneses, bought a new car. It looks better than yours so you bought one, too, even though you are still paying for your other car. And your new car is a bigger, better, more expensive model.

Why? Because you want to show the Joneses that you can compete with them financially and you don't want them to get a leg up on you. Is it really competetion or is it jealousy? Think about it.

Do the Joneses really care about your new car or have they even noticed? Probably not. But they are making you spend your money and they don't even know it.

Who are the Joneses anyway? The Joneses are the people who make you spend your money. They are the one's who make you use your credit cards when you don't have cash. They are the ones who make you create unnecessary debt and they make you spend your children's college funds.

Are the Joneses your enemies? No. Are they your competetion? No. Actually, the Joneses are your best friends, your family, and your co-workers. They are not your enemies, but they are your money's worst enemy.

And there is something else about the Joneses that you didn't take into consideration. The Joneses are trying to keep up with another set of Joneses who are also trying to keep up, and so on and so on, and they are all having financial problems.

Sooner or later, you and the rest of the Joneses will probably see each other in bankruptcy court. It happens to all of us, individuals and businesses alike.

We actually get into unnecessary debt because we don't use our better judgment. When the economy is good and we can afford to wine and dine our friends, it's okay. But when the economy goes bad, trying to keep up becomes a matter of staying afloat or sinking financially.

Finance Topic of the Month: Federal Deposit Insurance Corporation (FDIC)