Finder survey suggests Aussies take on debt to ‘keep up with the Joneses’

Despite cost-of-living pressures, the average Aussie spends $1309 more than they can afford and the reason is tragic.

Australians are collectively spending some $4.1bn more than they have just to “keep up with the Joneses”, a new survey suggests, and the pressure purchases can include big-ticket items like cars and designer clothes.

Comparison website Finder surveyed 1062 respondents in June and found 30 per cent felt pressured to make a purchase to match the lifestyle of friends or family, with the average Australian spending $1309 more than they can afford to compete.

Some 14 per cent felt pressured to split an expensive restaurant bill, even if they ordered less, while 11 per cent booked an expensive holiday and 10 per cent purchased tickets to an event.

Some 6 per cent bought a car and 5 per cent purchased designer items just to keep up appearances.

Nationwide, the excess spending cames in at $4.1bn, Finder said.

Pressure to ‘keep up with the Joneses’ is pushing Aussies to go into debt, the Finder survey suggests. Picture: NewsWire / Nicholas Eagar

The survey estimates some 15 per cent of Australians go into debt or spend more than they can afford from the pressure to spend.

“People are putting themselves in financial jeopardy, with some even taking on debt they can’t afford to ‘keep up with the Joneses’,” Finder personal finance expert Sarah Megginson said.

“Some people care deeply about how they appear and what the perception about them is, which can lead to some very unwise spending.”

The pressure to match the lifestyles of others was amplified by social media, Ms Megginson added.

“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.

“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.

“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.”

Originally published as Finder survey suggests Aussies take on debt to ‘keep up with the Joneses’