You know "The Joneses", right? We've all seen them. A new car every few years, extravagant vacations, and that house! Thanks to social media, we have the opportunity to see (and compare ourselves to) their seemingly affluent lifestyle on a daily basis. How is it that they live this way so effortlessly, yet you can't get there no matter how hard you work? Doesn't something just seem a little off?
I'll let you in on a little secret. It's. Not. Real. They can't afford the car, those vacations, and likely not even the house. But, you know who can? The finance company, VISA, and their bank. It's all because of debt - and a lot of it. They're taking money from tomorrow to buy what they want today, and in the process are stealing from their family's future for "right now" gratification. No one can live like that forever, and sooner or later it will catch up. The Joneses are drowning, and they have debt payments on everything. Their income is their largest tool to build wealth, but since it's all being consumed by debt, they will never have the ability to save and invest. For example, just their $350 car payment invested from age 30-65 (earning a 10% annual return) would grow to almost $1.2 MILLION dollars. Even their $4/day latte would grow to over $400,000 in that same scenario. It may seem hard to believe, but I assure you the math is correct.
It's time to start a new trend. Let's replace bragging about shiny new financed cars with bragging about the used one that is paid off. Instead of raving about tropical vacations, let's rave about the family time we intentionally set aside at home. Lastly, lets replace extravagant homes with extravagant college funds for our children's future. We have two choices: sacrifice small things today for large financial gains tomorrow, or do what "feels good" today and guarantee future financial hardship. We all know the correct choice. Let's stop caring about the Joneses and start doing what needs to be done to win.
*Are you fed up with your own financial situation and ready to take steps to turn it around? We can help. Our one-on-one Financial Coaching will show you how to pay off debt, build your savings, control your finances, and finally start winning with money. CLICK HERE to send us a message or call (605) 252-5972.
Baseline Financial Solutions, LLC is located in Aberdeen, SD.