Common money secret Aussies are hiding about homes, holidays

Majority of Aussies are hiding a secret about one key cash area and it is coming back to haunt them, new data shows.

Most Aussies don’t have as much money as they make out.

Ever wondered how people in your circle are able to afford such nice things? Turns out they usually can’t – especially their houses.

Research from Finder has uncovered a startling national crisis of financial fakery, with nearly one in three Aussies admitting they feel pressured to spend beyond their means to keep up appearances.

It suggests that behind many Aussies’ glossy Instagram posts, designer outfits, and holiday snaps lies a sobering truth: millions are faking the rich life – and paying dearly for it.

Finder noted that the desire to keep up with the Joneses was pushing ordinary Australians into debt traps disguised as dream lifestyles.

Five per cent of people confessed they go on holidays they can’t afford, another five per cent said they drove cars that are financially out of reach, and similarly high numbers overspent on and clothes – all in the name of image.

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Women often felt more pressure to keep up appearances than men.

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Homes were a particularly large expense, with many admitting they lived in properties they couldn’t afford.

Women, the study found, were disproportionately affected, with 35 per cent admitting to lifestyle pressure compared to about a quarter of men.

It comes as credit reporting agency Equifax revealed more than half of Aussies aged 18-24 were using Buy Now Pay Later (BNPL) services, with a potentially detrimental effect on their credit scores.

Roughly 5 per cent of BNPL users in this age group were in arrears and this would make it harder for them buy homes down the track.

Lenders also viewed missed BNPL payments as a sign of financial stress or poor credit behaviour. This would, in time, limit people’s mortgage options or increase their overall cost of borrowing.

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Pressure to keep up appearances is why auction sales are often so effective. Photo: Tom Parrish

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Equifax reported that the volume of consumers who have BNPL as their only credit product has increased roughly 30 per cent since March 2023.

Personal finance expert Sarah Megginson said keeping up appearances was a financial ticking time bomb.

“Draining your savings to keep up appearances is a disaster waiting to happen,” she said.

“Sometimes it’s one large, flashy purchase, but most of the time it is a pattern of behaviour. You charge little things to BNPL or slap them on a credit card, and over time, those debts pile up.”

Ms Megginson said social media was a catalyst for the crisis, amplifying the illusion that others were living larger and debt-free.

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Finder personal finance expert Sarah Megginson said Aussies felt a lot of pressure to spend more.

“What you see online isn’t always reality,” Ms Megginson warned. “A lot of the flashy lifestyle you’re seeing is built on debt.”

The financial expert urged Australians to resist the trap of lifestyle creep, the tendency to spend more with every pay rise or bonus, and instead focus on building real financial security.

“If all your spare cash is going towards discretionary spending, you won’t have an emergency fund when life throws you a curveball,” she said.

The bottom line: in a culture obsessed with image, many Australians are pretending to be rich while quietly going broke. And the cost of that illusion is mounting.

Originally published as Common money secret Aussies are hiding about homes, holidays