A new survey reveals that nearly a third of Australians feel the pressure to maintain a lifestyle they cannot afford.
The survey from Finder, which polled over 1,000 Australians, found that approximately 6.3 million people feel compelled to “fake rich” in order to keep up with the expectations set by social media and their peers.
Among those numbers, five per cent of Australians spend on holidays and vehicles that are beyond their financial means.
Additionally, four per cent are spending on clothing, and three per cent on memberships, in an effort to maintain an image of wealth.
So, are you faking being rich?
On Thursday morning’s episode of The Briefing, we sat down with Finder’s money expert Rebecca Pike to unpack where this pressure is coming from, what we’re overspending on, and how to avoid falling into the “fake rich” trap.
“We know that about four or five per cent of Australians say that they are driving a nicer car than they can afford just for the look,” Pike said.
She also noted that social media exacerbates this issue, creating a distorted view of reality and pushing people to keep up with others.
“The people that do get sucked into the influencer lifestyle… the algorithm will know that you’re the right person to keep sending that stuff to. So it kind of gets you into a spiral.”
To combat the pressure to overspend, Pike encourages Australians to focus on their own financial goals and adopt healthier spending habits.
“The other thing is just to really focus on where your money is going. Take a look at it. I always tell people to become obsessed. Check your bank balance every day. What have you spent? Where is your money going?”
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