No, you’re not the only one who’s not rich or happy. It’s a repeating message: the lavish displays of wealth on social media are often not what they seem. Financial expert Dave Ramsey has a powerful message for those captivated by the opulent lifestyles they see online: “The expensive cars, luxurious vacations, and other extravagant displays are rarely true indicators of wealth.”
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It’s a modern twist on the age-old concept of ‘keeping up with the Joneses.’ The pressure to match the lifestyles seen on social media can lead to devastating financial consequences.
You may have heard of body dysmorphic, but what about money dysmorphic? The new trend is taking down a generation. Financial advisors have coined the term ‘money dysmorphic’ to describe the feelings of financial insecurity or the perception of not doing well compared to others.
29% of American adults surveyed by Qualtrics for Intuit Credit Karma said they experienced “money dysmorphic.” A staggering 62% of Gen Z report financial pressure to keep up with their peers and family members.
To underline Ramsey’s point: A LendingTree study found that 51% of respondents admitted to overspending to impress others, and 56% are now in debt from overspending. And it’s not hard to get there.
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Let’s look at that for a minute. The median American salary in 2023, according to the Bureau of Labor Statistics, was just $59,540, or $4,954 a month before taxes. For simplicity, suppose you pay $13,000 a year in combined federal and state income taxes. That means your take-home pay is $3,878 a month.
If you’ve got a $700 monthly car payment and take a $10,000 vacation twice a year, you’re left with just $1,511 a month for food, housing, gas and other transportation costs, insurance, medical care, and fun. There’s also probably nothing left for savings. Delete one $10,000 vacation, which is $2,428, rarely enough to make mortgage payments and buy groceries in most parts of the county.
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So, what is the true mark of wealth? Ramsey says it’s three things: “making an impact through giving, leaving a legacy, and having options for how you live your life.” The great news? None of those are fancy cars or Instagram-worthy vacations; you can achieve them on any budget.
By these measures, Americans are relatively wealthy. Regular Americans made 64% of all American charitable donations in 2022, according to an analysis by the United Nations. And 68% of Gen Z and millennial Americans have already received an inheritance or expect to receive one in the future, with an average inheritance size of $320,000.
The last measure of true wealth is location and lifestyle freedom. This is a personal decision, but you’ll know when you’ve got it. It could come from early retirement or loving what you do and where you live. The freedom to choose makes America great and why you could do better than you realized.
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This article Dave Ramsey Slams Instagram Rich: Your Fancy Friends Are Probably Broke originally appeared on Benzinga.com
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Source: finance.yahoo.com