2. They Try To “Keep Up With The Joneses”
There is an insightful article in the Wall Street Journal called Families Go Deep in Debt to Stay in the Middle Class. It goes over how much people tend to get into debt so that they can keep up with the appearances of what it means to be “middle class.” Then, logic would tell you that people care far too much about what their neighbors think than about whether they are living meaningful and happy lives. This forces the question of whether middle class is a lifestyle or an income bracket. Can someone earn $80,000 a year, live frugally, save heartily, and still be considered middle class?
If you live in the middle class, you can see this happen in real-time. When one person gets solar panels on their roof, suddenly everyone else does, too. And if there is a nice sports car or pickup truck in the driveway, someone else wants to get one so that they can appear to be doing just as well. This kind of behavior is toxic, and it will ultimately lead to unnecessary consumer debt. Living within your means may mean that you have to avoid people who only care about appearances so that you are less tempted to spend money that you do not have for things you do not want to impress people that you do not even like.