Let’s Talk Finances – by Hans Myburgh, registered financial advisor and Northmead resident.

We live in a world where the image we wish to portray comes at the cost of reality.

Social media platforms are teeming with influencers, friends and celebs flaunting designer clothes, posting about fancy meals, revving it up in expensive vehicles and gushing over trips to exotic locations.

Whether we like to admit it or not, this constant stream of lavish lifestyles that others lead has an effect on how we view ourselves.

You may start feeling like you are lagging behind and need to catch up, even if our bank account says otherwise.

“The truth is most people are living beyond their means in order to impress but who is really paying attention?” said Hans.

“The pressure to look successful is quietly ruining lives. Status spending can have a huge impact on your long-term financial health.”

How to break the cycle of status spending:
• Be honest about your money: Study your budget. Are you spending to impress or to live?

• Ask ‘why am I buying this?’ If the answer is to impress others, pause and reflect.

• Focus on value, not labels: Name brands do not always reflect quality, sometimes off-label items are good enough.

• Build quiet wealth: Financial wealth does not always flaunt, rather focus on living within your means and investing for the future.

• Stop comparing: Appearing wealthy may come with more debt, stress and less freedom.

“Financial wealth does not stem from looking rich. It comes from being free of debt, pressure and the need to impress others,” he said.

“Before splurging remember, you owe yourself the opportunity to invest in your future.”

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