I was watching television (apparently this is a trend in my blog posts) when I came across an episode of Dr. Phil, about a man who went from being a successful stock trader, to robbing banks. Although I did not watch the show, it intrigued me enough to go online and do some research.
Stephen Trantel worked on Wall Street as a commodities clerk and trader making $300,000 a year at his peak, until hesuffered a series of setbacks in 2002 and 2003 which resulted in him not being able to earn. He felt that he needed to keep his family living in the lifestyle they were accustomed to, so after attempting to get multiple different jobs, he started to rob banks. He robbed 10 over 4 months before getting caught.
This is an old story, but one I was fairly unfamiliar with and it had me thinking about people that lie to themselves or others about finance, and that can’t seem to face reality that they cannot spend as much as they want anymore. Instead of coming clean to his family and friends, Stephen felt the need to lie to them and keep up appearances. If he had just been honest they could have filed for bankruptcy at the worst, and avoided the 9 years in jail that he is sentenced to.
Why is this mindset so prevalent in society? People overspend constantly, buy cars they cannot afford, homes they cannot afford, spend too much money when out with friends, basically so that they can look good and keep up with the spending of the people around them. It is this rivalry that breeds overspending. People do not NEED a BMW, do not NEED a big mansion, it is simply not achievable for everyone. If you desire these things, and can afford them, by all means, go and them. But if you cannot, why is there a stigma around saying “I cannot afford to do this and that.” People need to get over themselves.
I have no problem telling my friends I do not want to do something because I can’t afford it; it’s reality and I am not going to put myself further into debt just to avoid the societal shame of not having a ton of extra income. You do not necessarily have to say your reasoning if you are uncomfortable doing so, but you can definitely find reasons and excuses to decline, or you can suggest different, cheaper activities to do (there is no reason they need to know you are suggesting it because it’s cheaper!).
As far as the fancy cars and homes and stuff goes, don’t buy it if you can’t afford it. Sell it if you can no longer afford it due to a decreasing income. Even if my income tripled, I would never drive anything more than a mid-range, fuel efficient vehicle. I just don’t see the point. And I’m getting quite comfortable with the minimalism, so the constant purchasing would drive me bananas as well.
Why buy a BMW or Range Rover when you could buy this Garden Van? (Image Source)
There is nothing shameful about being frugal and living within your means!
Do you feel the pressure to “Keep up with the Jones’”?
Click here to read “Stolen Dreams”, an article 48 Hour Mystery wrote on Stephen Trantel.
