Quoted In FP Article: Keeping up with the Joneses could be keeping you from financial freedom
PAYING TOO MUCH ATTENTION TO WHAT OTHERS ARE SPENDING COULD BE PUTTING YOU IN DEBT
In an age when everything is available at the tap of a finger, it’s easy to get carried away with spending by splurging on the latest and greatest pair of shoes or the latest technology. This is especially true when you see friends or colleagues doing just the same. But these external pressures could spell trouble for your financial wellbeing.
The FP Canada 2021 Financial Stress Index shows one-third (31%) of Millennials (those aged 18-34) actually feel pressured to keep up with their friends and colleagues’ financial status. That’s compared to 12% of Gen Xers and just 8% of Baby Boomers.
A recent study shows an estimated 47% of social media users in Canada spend an average of $924 via social channels each year. Retailers are taking note and trying to capitalize on the trend.
With many young adults on social media for hours every day, companies are leveraging it as a powerful marketing tool to reach them. But the convenience of purchasing something so easily can quickly take a toll on your credit card bills.
PUT A PLAN IN PLACE
The same applies to everything you want and need—the latest mobile phone, new car or house. Putting a plan in place helps you take an all-encompassing view of your life and ensures you stay on track, so you don’t spend outside your means.
“Building a financial plan is fundamental to reducing financial stress,” says Caval Olson-Lepage, a CFP professional in Saskatoon, SK.