Keeping up with the Joneses
I may be 15 years late, but I just finished reading The Millionaire Next Door. It was inspiring and eye opening all at the same time. Some chapters I plunged into whole-heartedly, while others I quickly skimmed, such as, “You Aren’t What You Drive.” I really don’t car much for cars, but bookmarked it for my husband to read, the car afficienado! Some of the data is a bit old, but the ideas behind who the truly rich are and how they accumulated their wealth isn’t out dated at all.
I don’t mean to turn this post into a book review, so many people have read this book, but it inspired me to do some thinking about how our society has had the wool pulled over our eyes for so many decades. The opulence we see on television is an illusion of who we’re supposed to think the rich are, the ultimate advertising campaign that drives many people into purchasing items they can’t afford and really don’t need. This misconception, that rich people live in large mansions, drive Bentley’s, and wear $10,000 Rolex’s is what might be keeping the average Joe (there’s something about the J’s!) from ever reaching their financial goal or becoming millionaire’s themselves. Constantly keeping an eye on the “Joneses” and following their lead may be detrimental to one’s financial health.
But who are the Joneses? Where did they come from? Why do we try to keep up with them?
The Joneses origins come from a comic strip around 1916 written by Arthur R. “Pop” Momand, apparently they were the main character’s (The McGinis Family) neighbors that were never seen in person (Wikipedia). Based on images I’ve researched, the main characters compared themselves with their neighbors with the intention of “out doing” the Joneses through consumer spending. The strip was meant as a parody, or mockery, of the main characters behavior. Who knew that the title of this comic strip would become so ingrained in the lives of Americans!
Nearly 100 years later, the phrase is still used to describe the conspicuous consumption of middle-class families. Of course envy, jealousy, and greed have existed since the dawn of humanity (that’s the anthropologist in me speaking!) We’ve just been able to create a catch-phrase to make is sound snappier and less gauche.
Finishing Millionaire I realized that the Joneses aren’t who we’ve been thought to believe they are. Which is quite ironic considering the Joneses in the comic strip were never seen, so who really knows who they were? Here is a breakdown of how I’m beginning to see the real “Joneses”:
- Deep in debt. In order to continue the illusion of wealth, they purchase items beyond their salary on credit.
- Low or negative net worth. I’ve finally figured out the net worth calculation thanks to the book; age times salary divided by 10 should be your net worth. Today’s Joneses are lucky to be in the positive.
- Living Pay Check to Pay Check. The idea that wealth is based on how much one owns is a fallacy. It’s really how much one’s saved. Unless you have access to their bank accounts, there’s no way to know based on outward appearances.
- Feeling insecure about the future. The Joneses are deep in debt. People up to their eyeballs in debt, spending much more than what they earn must feel very uncertain about what the future holds for them. A loss of income could be devastating.
As popular as Dr. Stanley and Dr. Danko’s book was, not enough people have been exposed to the ideas behind who the millionaires really are and this is deplorable. More education should be dedicated towards personal finance with the hopes of enlightening the masses. Perhaps a new comic strip should be created for today’s readers, entitled with the same mellifluous sound such as The Savvy, Spend-Thrift Smothers. It could be about the trials and tribulations of living frugally, reusing, recycling, and saving your pennies! Each week, the comic could total up the family’s retirement account showing how much the family has saved. It could inspire a whole new generation of conscious consumers.
For what I’ve learned is trying to maintain the illusion of wealth through spending is no way to live. So, forget the Joneses, we never knew them!
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Thanks for the tidbit on where Joneses came from.
I actually think there is a lot more wealth out there than people can imagine, and people with nice cars really are wealthy. I take it as a challenge to keep me motivated!
.-= Financial Samurai´s last blog ..East Coast Living – Is It Really That Bad? =-.
@FS -Living in Los Angeles I’d have to say that many people who drive nice cars aren’t wealthy. It’s all part of “Living the Illusion”. But maybe that’s just L.A.
Thanks for sharing the origin of the Joneses…I had no idea where the phrase came from.
I agree many people who drive fancy cars and wear expensive clothes are simply living beyond their means and trying to keep up with the Joneses. It’s a dangerous game to play.
.-= Saving Money Today´s last blog ..Would You Buy A House Without Seeing It First? =-.
Thanks for the history lesson — who knew?
@Sam: I believe it’s more likely that the 65-year-old woman driving the 20-year-old car next door is wealthier than the guy with the BMW in his driveway. Rich on paper, perhaps. But I think most of the “Joneses” are stretching themselves thin.
.-= Rainy-Day Saver´s last blog ..Stocking Up Your Pantry: Yea or Nay? =-.
I think a comic strip would be hard pressed to beat out the marketing machine of consumerism, but we could try and see how it turns out
I also wonder about the rule you mentioned by calculating your net worth via your age and salary. If that’s the case, as a younger twenty something I’d have to be worth about 84k at the moment… perhaps the rule shouldn’t start until a certain age, or perhaps I’m slacking
@Saving Money Today – Thanks for the comment. It’s so strange that we’ve lost touch with where many of these common phrases come from. I love history, so I’m always up for research!
@Rainy Day Saver – Thanks for backing me up there! I think Sam might be a bit delusional living in SF
Today the “Joneses” phrase directly relates to over-buying with the idea of showing off and making oneself appear wealthier than actuality. The funny thing about the comic strip was that the Joneses were never seen.
@Ryan @ Planting Dollars
You are probably right. Who reads actual newspapers anymore?!
As for the calculations, I see your point. I’m pretty sure Dr. Stanley and Danko didn’t factor in those just starting out. Much of their book is based on the age group between 50-65.
@Little House
Loved the education about “Keeping up with the Joneses“! I had no idea! I agree the fact that the Joneses are never seen goes hand in hand with the idea that they are an illusion and not really rich! Very clever observation on your part
@Ryan, for younger people just out of college, the formula doesn’t apply so much since they just started working, but I think the authors wanted to keep it simple…
“The Millionaire Next Door” really opened my eyes about how people became rich and their spending habits. Prior to reading it, I believe you were either born rich or you weren’t or very very lucky!
For me, the book gave me hope, that some day with hard work, frugality and a bit of luck… I just might make it to that level of wealth!
Hopefully I’ll make it some day
Great discovery, I’m tweeting this!!!
.-= Money Reasons´s last blog ..Red Box Review =-.
@Money Reasons – Thanks for that great comment! It’s quite ironic that the Joneses were never seen in the comic strip. But I think that was the point!
Hello!
I am a fellow Yakezie:). I just ordered this book a few weeks ago and am looking forward to reading it–thanks for the post!
.-= Amanda L Grossman´s last blog ..Frugal Confessions Friday!! =-.
I love to learn interesting facts so was fascinated about the origin of “keeping up with the Jonses”. Too bad we haven’t progressed as a society in 100 years.
.-= Bucksome´s last blog ..Debt Collectors: I am not Antonio S. =-.
The Joneses are broke. took me years to realize that.
@Financial Bondage – Thanks for your comment. It took me many years to realize this too. I’m so glad I know understand.