Millions of Australians are overspending to keep up appearances, often beyond what they can afford, according to new research by comparison website Finder.
Social pressure, made worse by social media, is causing many to face serious financial problems. A survey of 1,062 people revealed that 30% – or 6.3 million Australians – have felt pressured to buy things just to match the lifestyle of their friends or family.
Even more worrying, 15% – over 3.1 million people – admitted to going into debt or spending more than they could afford due to this pressure.
The financial impact of this so-called ‘comparisonitis’ is staggering. On average, Australians have spent $1,309 beyond their means in the past year, resulting in a total of $4.1 billion nationwide in unnecessary spending.
Personal finance expert at Finder, Sarah Megginson, warned that this trend is not only common but also financially damaging.
“Everyone has different incomes and different priorities in life, but sometimes we’re not as intentional with our spending as we would like to be,” said Megginson. “As a result, people are putting themselves in financial jeopardy, with some even taking on debt they can’t afford to ‘keep up with the Joneses’.”
The survey highlighted the types of purchases Australians felt pressured into. Splitting an expensive restaurant bill despite ordering less (14%), going on extravagant holidays (11%), and buying tickets to high-priced events (10%) were among the most common. More substantial purchases like cars (6%), designer items (5%), and even homes (5%) were also cited as pressure-driven expenses.
Megginson pointed to the role social media plays in amplifying this unhealthy behaviour, noting that platforms offer a distorted view of others’ lives.
“Never before have we had such an intimate and behind-the-scenes view into other people’s lives – but it’s important to remember it’s a highlight reel,” she said. “The millionaire next door might be drowning in debt to afford that apparent life of luxury.”
With financial pressures mounting, Megginson cautioned that attempting to keep up with others is a dangerous path.
“Getting into debt, ruining personal finances, and compromising your values are all very real risks when it comes to trying to keep up with what others have,” she said. “Success isn’t defined by what you have or where you holiday. Focus on future wealth by paying your debt off and dedicating more money to investments and savings than to material possessions.”
As Australians continue to grapple with rising costs of living and societal pressure, the findings from Finder serve as a sobering reminder of the financial pitfalls of living for appearances.
