Not that it's a news bulletin to anybody, but I think people overconsume to fit in with whoever they identify with--people down the road, or maybe the celebs on television. We have one simple-liver friend who is young, single and debt free except for her mortgage on a very small house. She works in banking, has an excellent credit record, hates to shop, and couldn't give a rip what anybody thinks of her stripped-down lifestyle. We love her and try to emulate her.
Most of our friends, though, are into buying crap. It's kind of dispiriting when it creeps into the relationship. My husband was pretty shaken recently when he came close to having a passionate argument with his good friend Bart over the subject of home buying. He's constantly telling my DH that it's stupid to rent, and we should buy a home. I keep telling DH not to take financial advice from a guy who treats bankruptcy as refinancing--apparently he went bankrupt so he could have an extra $100 a month. I'm not familiar with the details, but apparently he needs that extra $100 for his car payment. He's been paying on that fancy car for something like a thousand years. What's doubly weird is that Bart also rents the house he lives in, but he's screaming at us to "Get off your ass and buy buy buy!"
So DH said it's too expensive to buy, but especially in the neighborhood where Bart lives. Bart said, no it's not, the mortgage would work out to be the same as your rent. My DH said, our rent is around $900, and we happen to know that the homes in Bart's area run from around $300k to $500k. And there's no way we could wrangle a mortgage payment that small on any of the houses in the area. But Bart's still arguing. If it's so cheap to buy, we're wondering, why does Bart still rent? It's bizarre...
People can overconsume if they want, but I really hate being lectured by them when our situation is actually better. I mean it doesn't
look better--all Bart sees is our poky one-room apartment and bumperless car--but we've got no debt and a positive net worth. Those things, though, mean nothing to Bart and his ilk. Who can figure it?