Keeping ‘appearances’ prioritised over property ownership
New research has found that Australians are putting more emphasis on their lifestyle rather than having an interest in owning property.
A Financial Fitness white paper, commissioned by broking franchise group Mortgage Choice and conducted by research firm CoreData, revealed that 35 per cent of Australians are feeling pressured to keep up appearances and maintain their lifestyle, with younger generations and women feeling the most pressure.
Mortgage Choice chief executive officer Susan Mitchell said the research revealed that, as a result, 38 per cent of Australians are choosing to give up purchasing property.
Of the 35 per cent of Australians feeling pressured to keep up appearances and maintain their lifestyle, the statistic surged to almost 50 per cent among respondents aged 30 years and younger, Ms Mitchell said.
“Worryingly, the research revealed that some Australians are choosing to sacrifice their health in order to maintain their lifestyle, with almost 39 per cent of respondents forgoing regular dental check-ups and over 31 per cent forgoing private health insurance,” she said.
“The research [also] found that an alarming number of respondents were not saving a portion of their salary, with over 18 per cent of Australians saving nothing each pay cycle and over 8 per cent spending more than they earn.”
Meanwhile, the research found that only 20 per cent of Australians aged between 51 and 60 felt pressured to keep up appearances like younger generations do.
‘Image is everything’
Although it can be tempting to keep up with trends, Ms Mitchell said it can be risky to spend for today without incorporating a strategic plan for financial security in the long term.
She said that this was unsurprising in modern Australia where image is everything, particularly for younger generations, as social media continues to draw in daily users and inundate audiences with projections of enviable lifestyles of Instagram and YouTube influencers.
Strategic financial plan
A strategic financial plan, which includes a budget and savings regimen, can combat the pressure and stress involved with keeping up appearances, according to Ms Mitchell.
“We all have different needs and priorities. Creating a strategic financial plan with the help of a qualified financial adviser can help people achieve their goals, without giving up everything that is important to them,” she said.
Ms Mitchell suggested that having a financial plan doesn’t mean Australians need to sacrifice the lifestyle they want to live.
“You might be surprised to learn that making a few adjustments to the way you use your money could have a significant impact on your overall financial fitness and could help you achieve your long-term financial goals,” she concluded.
Top tips for financial planning
For those who want to break their obsession with keeping up appearances, Mortgage Choice provided the following tips:
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