Previous post:

Next post:

Keeping Up With the Joneses

by Don Current on June 3, 2010

Porsche by Alex-s

Porsche by Alex-s

This morning on ABC’s Good Morning America, they caught up with a group of people that had been on the show last January. They were all deeply in debt and struggling. They received some advice and help from Dave Ramsey at that time to get a Total Money Makeover. In this follow up segment, they review how far they’ve come since their last visit.

What was striking to me was not so much how far in debt they were. What struck me is that the group represented a cross-section of America with salaries ranging anywhere from $15,000 per year to $150,000 per year. You see, it really doesn’t matter how much money you make per year. If you make more money, it just allows you to get into debt that much quicker and that much further. The “keeping up with the Joneses” mentality is a real condition. No matter how much money a person makes, they tend to aspire to the next level up, when in reality, they can’t afford it.

In Thomas Stanley’s book The Millionaire Next Door he relates that most people living in million dollar home are not actually worth a million dollars! In fact he found that there were three times as many millionaires in $300,000 or less homes as there were in $1 million dollar homes! Our society is so focused on image that they don’t really realize that in reality the truly rich Joneses are living in a nice modest ranch style home and driving a Ford F-150! No really! Just read Dr. Stanley’s book!

The real key to being rich is not looking like you are. It’s really quite simple. You’ve got to live on less money than you make. The more frugal you are, the more money you will save, and the richer you will become. Wouldn’t the freedom of not being broke be so much more fulfilling than driving that fancy car or living in that fancy house?