Australians are making some tough decisions this year. What started as a cost of living crisis is becoming a cost of living crisis.Lifestyle crisis.
Rising prices and a steady stream of household bills have affected big They bite into our vacation and leisure budgets. Now I think it’s time to call out social media for generating impossible expectations.
Every time we open our phone we remember what we are missing. Social media is rife with get-rich-quick schemes and “influencers” who have made a career out of falsifying their wealth.
RELATED
Scroll through and you’ll see an acquaintance from five years ago drinking sangrias in Spain or someone from high school ripping the hood off a new car. It’s like a Pandora’s box in our hip pocket and we rarely use our power to turn it off.
But don’t be fooled by “fraudulent” purses and the fallacy of false wealth. While some seem to be living a good life, there’s a good chance that you are more financially secure than them! This is why.
The rise of ‘debt arrears’
While some return from abroad jet-lagged, others experience “debt delay.”
Compare market research which found one in five Australian tourists use Buy Now, Pay Later schemes, credit cards or personal loans to finance their holiday.
That’s a little scary when it would take over 49 years and cost over $20,000 in interest to pay off $5,000 in credit card debt by making the minimum payments.
Warren Buffett was right when he said “Only when the tide goes out do you find out who has been swimming naked.” You don’t want to be the one who gets caught.
But Compare the Market also found that 14 per cent were not planning to take a holiday in the next 12 months. To some, this is unfathomable, but the reality is, it may make sense!
Ask your parents or grandparents if they were planning a big international getaway every year and they’ll tell you, “No, it’s a new phenomenon.”
But the reality is that when money is tight, you may have a better time in Yamba than in the south of France, where the scarce Australian dollar won’t go very far.
Some of my most treasured family holidays have been simple ones here in Australia. They may not have been glamorous, but they were stress-free!
Choosing a domestic destination or skipping a vacation to save could put you in a better position to afford a bigger trip in the future.
Don’t fake it until you make it
Pink-tinged Instagram filters seem to be the perfect disguise for the pain we’re all feeling. The vast majority of Australians are still having a tough time.
Our Compare the Market data shows the average Australian spends $355 quarterly on their electricity bill, $62 per week on fuel and $192 per week on groceries.
But just because this may be a year of belt-tightening doesn’t mean we have to live in a “cost-of-living lockdown.” It’s all about finding the right balance for your budget.
Spending a little time researching and comparing your bills could help you finance a great dinner or weekend with the family.
It is important to treat yourself from time to time to continue enjoying the pleasures of life. Just don’t try to keep up with the Kardashians.
Get the latest news from Yahoo Finance – follow us on Facebook, LinkedIn and instagram.
