A Recipe for Social Pressure: Materialism, Lifestyle and Inflation
In episode 51 of the Financial Griot podcast, we discuss the toxic recipe of materialism and the void of purpose that it steals from us. There is a meta-correlation that can be drawn from how we spend and how we feel about ourselves as we age. To quote the meme by the time you are 35, just know you have two of everything at home.
It’s important to note that, the world is entering the late stage of the business cycle, prices are high, productivity is low and recession looms heavy. It’s no longer optional to be financially literate.
Becoming financial literacy and materially free is not a mere act of minimalism for the gram. It’s a struggle upstream from the current direction of society. With that said, turning toward your purpose changes you.
Overcoming lifestyle creep is a very real obstacle to building wealth.
Table of Contents
Materialism and Consumer Indebtedness Explained
Merriam-Webster defines materialism as a tendency to consider material possessions and physical comfort as more important than spiritual values.
Richins and Rudmin [1994] examined the relationship between materialism and aspects of economic psychology. The research was designed to investigate how people with differing levels of materialism vary in their propensity to spend and/or save and their attitudes and behaviors toward borrowing money.
The results indicate that highly materialistic people are more likely to view themselves as entitled spender who has more favorable attitudes toward borrowing. In a society that extends credit to developing minds as early as 18, it’s easy to see how spending can become an addiction.
Often blamed on consumers’ overspending and excessive debt levels, the research instead introduced the concept of transformation expectations as an important explanatory variable for the relationship between spending and credit overuse.
In the end, a relaxed debt attitude encourages a stronger belief that life transforms through acquisition. Subsequently, these forces work together to increase credit overuse and long-term indebtedness.
All to say that our 70% consumption economy will remain resilient even during economic downturns and unto debt do us part.
Here are some tips on how to Overcome Lifestyle Peer Pressure and Materialism
- Focus on your end goal. From buying a home, getting married, and/or retiring, focusing on a long-term goal makes it easier to say “No” today.
- When possible take only cash with you. You are less likely to go broke spending if you don’t have access to credit.
- Build accountability communities that have less to do with spending and materialism such as biking, running, hiking and etc. While you will spend some money on these activities, you will also develop what you love.
- Have a lifestyle exit strategy. At some point no amount of self-restriction will help, you will have to make a decision on who you will be in life.
- Participate only in so much as you can contribute. Stop being the go-to person to spend. Be selfish with your life’s purpose and your personal endeavors. Good friends fall off, Great friends stick around even if you have different hobbies.
How to beat Materialism for Good?
The Financial Griot podcast is all about pushing the narrative of your own life’s journey. We share our stories along with guests to shift the narrative that good time is based on the amount you spend.
Furthermore, some of the best stories in your life won’t happen at a bar or at brunch versus venturing into the unknown. Tap deeper into yourself and embrace changes. Beyond that, we talk about Finances and we aren’t afraid to. Specifically, we teach how to become Financially literate, incorporating actionable steps and ultimately building generational wealth.
Can you imagine being a Millionaire in 20 years or less? Yeah, it’s possible. 80% of millionaires are first generation. That means they didn’t come from wealth.
We teach you how. Join a community of subscribers that welcome a fresh take on money.
So there you have it, The Financial Griot, or TFG for short. The hosts were able to amass over $2 Million in wealth in about 8 years and are on track to retire early. If you want the secrets; we will gladly share win-win lifestyles.
Connect with TFG Crew aka the Hosts:
- Alainta Alcin – Blogger, Travel and Money Enthusiast @alainta_alcin
- Lovely Merdelus – Entrepreneur and Small Business Growth Specialist @lovelymerdelus
- Lawrence Delva-Gonzalez – Federal Auditor, Blogger, and Tax Specialist @theneighborhoodfinanceguy
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