Have you ever scrolled through your social media feed, seen friends posting from luxury resorts or behind the wheel of a shiny new car, and wondered, ‘How on earth do they afford that?’ If so, you’re not alone—and the answer might surprise you.
According to new research, a growing number of Australians are quietly faking the ‘good life’, and it’s costing them dearly.
The pressure to keep up—and the hidden cost
A recent study by Finder has revealed a startling truth: nearly one in three Australians feel pressured to spend beyond their means just to keep up appearances.
That means millions of us are stretching our finances thin, not for essentials, but to project an image of success—whether it’s a bigger house, a flashier car, or that envy-inducing overseas holiday.
It’s not just the occasional splurge, either. The research found that 5 per cent of Aussies admit to going on holidays they can’t afford, another 5 per cent drive cars that are out of their financial reach, and many more overspend on clothes and other lifestyle items—all in the name of image.
Homes, in particular, are a major culprit, with many Australians living in properties that are simply too expensive for their budgets.
Social media: The illusion amplifier
It’s no secret that social media can make us feel like everyone else is living a more glamorous, debt-free life.
But as personal finance expert Sarah Megginson points out, ‘What you see online isn’t always reality. A lot of the flashy lifestyle you’re seeing is built on debt.’
The constant stream of holiday snaps, designer outfits, and home renovations can create a powerful sense of FOMO (fear of missing out), pushing us to spend more than we should.
The rise of ‘Buy Now, Pay Later’—and the debt trap
The temptation to keep up with the Joneses is being fuelled by easy access to credit, especially among younger Australians.
Credit reporting agency Equifax recently revealed that more than half of Aussies aged 18-24 are using Buy Now, Pay Later (BNPL) services.
While these platforms can seem like a convenient way to spread out payments, they can also lead to trouble: about 5 per cent of young BNPL users are already in arrears, which can damage their credit scores and make it harder to get a home loan in the future.
Even more concerning, the number of people whose only credit product is BNPL has jumped by 30 per cent since March 2023. Lenders see missed BNPL payments as a red flag for financial stress, which can limit your borrowing options or increase the cost of future loans.
‘Buy Now Pay Later’ schemes can pose a problem if not managed properly. Image source: Photo by SumUp on Unsplash
The gender gap: Why women feel the pinch more
Finder’s research also uncovered a gender divide: 35 per cent of women say they feel lifestyle pressure, compared to about a quarter of men.
This may be due to a combination of social expectations, targeted advertising, and the unique financial challenges women often face, such as the gender pay gap and career breaks for caregiving.
The danger of ‘lifestyle creep’
It’s easy to fall into the trap of ‘lifestyle creep’—spending more every time you get a pay rise or bonus. Ms Megginson warns, ‘Draining your savings to keep up appearances is a disaster waiting to happen.
Sometimes it’s one large, flashy purchase, but most of the time it is a pattern of behaviour. You charge little things to BNPL or slap them on a credit card, and over time, those debts pile up.’
If all your spare cash is going towards discretionary spending, you may find yourself without an emergency fund when life throws you a curveball—be it a medical bill, car repair, or job loss.
Lifestyle creep can wreak havoc on your savings if left unchecked. Image source: Studio Romantic / Shutterstock.com
How to break the cycle and build real wealth
So, what can you do to avoid falling into the ‘fake it till you make it’ trap? Here are some practical tips:
1. Be honest about your finances.
Take a clear-eyed look at your income, expenses, and debts. Are you living within your means, or are you relying on credit to fund your lifestyle?
2. Set realistic goals.
Instead of trying to keep up with others, focus on what truly matters to you—whether it’s saving for retirement, paying off your mortgage, or taking a modest holiday that won’t break the bank.
3. Build an emergency fund.
Aim to set aside at least three to six months’ worth of living expenses. This safety net can help you weather unexpected financial storms without resorting to debt.
4. Limit your exposure to social media.
Remember, most people only share their highlight reels—not the reality behind the scenes. If you find yourself feeling envious or pressured, consider taking a break from scrolling.
5. Seek support if you need it.
If you’re struggling with debt or financial stress, don’t be afraid to reach out for help. Free financial counselling services are available across Australia, including the National Debt Helpline (1800 007 007).
The bottom line
In a culture obsessed with image, it’s easy to fall into the trap of pretending to be richer than you are. But the cost of that illusion—financial stress, mounting debt, and lost opportunities—can be far greater than any fleeting moment of envy or admiration.
Have you ever felt pressured to spend more than you can afford to keep up appearances? Or have you found ways to resist the urge and focus on what really matters? We’d love to hear your stories and tips in the comments below!
Also read: Bank chief’s prediction on the future of money in Australia—what does it mean for you?
