5 Reasons Why You Should Stop “Spending To Impress”

You know the phrase… “Keeping up with the Joneses.”

It’s the pressure and thoughts of having better and bigger toys, houses, cars and stuff than your neighbors. This behavior is one of the top ways families eventually find themselves overextended, underwater… and in financial ruin.

Here are 5 big reasons why you should not try to impress others with what you have, and to stop “spending to impress” your family and neighbors if you’re guilty of this now:

Big Reason #1: You have nothing to prove.

There is no trophy or award that goes to the person with the most stuff. Often, behaving like this can actually cause family and friends to resent you, for showing off while others are experiencing financial troubles.

Big Reason #2: Buying stuff will put you deeper into debt.

If you put $10,000 of stuff on a credit card, the interest cost will be close to $15,000. Leaving you with the reality that you really just paid more than double the cost of the things you bought.

Big Reason #3: The “big” friends you have are probably faking it too.

Did you ever think that they are playing the same game? It is a losing game. Over time, your friends will pay the price for showing off, just like you could when you let “spending to impress” take over your life.

Big Reason #4: Your retirement plan will be upset with you.

You see, having more money in your investment accounts working for you is much smarter, and gives you a much better feeling than spending that money on trying to impress someone. You won’t have the money you need down the road because of you spending and neglecting your retirement account. Plus, you will miss out on the tax benefits making deposits into your retirement account can bring you.

Big Reason #5: Those you love don’t care about your stuff.

The people that truly matter to you don’t care about the fancy things you buy. While your family really loves you no matter what you have or what you look like, they could grow to resent you for having things they don’t.

And guess what? When you don’t practice “spending to impress,” you’ll find it far easier to save money every single month. You’ll see your bank account growing every month. While you see your credit card bills get smaller and smaller.

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