Why Young People Are Financially Screwed

In 2024, ask an average person in their mid 20s which one of these they’d prefer:

• A fully paid off 8 year old car. Cheap to run, but somewhat uncool.

• A brand new car on finance, costing $750 a month, but cool.

They’re going to take the second option.

And the same could be said for a lot of different scenarios.

Why?

Because we’re living in a time where it’s all about image.

People are making terrible financial decisions for the sake of looking the part.

This is The Image Pandemic.

How The Image Pandemic Started

I’ve had many conversations with my parents and grandparents about what life was like when they grew up.

They said that although things are hard for young people today, this was also the case for their generations.

Sacrifices had to be made, and there was always an opportunity cost.

You can have something, but it means you won’t be able to get something else.

As a 23 year old, I look around today and see people who:

• Want everything.

• Want everything now.

• Want everything without having to put the effort in to acquire it.

So… how did this happen?

Easy.

Social media.

In a generation where everyone is so interconnected, image matters.

• What car you drive, matters.

• What clothes you wear, matters.

• Where you are on Saturday night, matters.

People are so caught up on their online profile and image, that their sacrifices are the opposite of those sacrifices the older generations made to improve financially.

Rather than sacrificing image for affluence, people are sacrificing affluence for image:

• Renting instead of buying.

• Financing a new car instead of buying an old one.

• Buying liabilities to look rich, rather than assets to get rich.

The result?

The gap between the rich and the poor has never been greater.

Key Problems

Poor Financial Choices

The first, and major problem with the image pandemic is that poor financial choices are made… a lot.

There’s a pretty strong correlation between trying too hard to look wealthy, and staying poor.

A lot of what you think will make you look affluent, are called liabilities:

• New cars.

• Designer clothes.

• Luxury holidays.

They take money out of your pocket.

And, at the same time, the boring, less glamorous stuff are called assets, and they put money into your pocket.

• Savings

• ETFs

• Real Estate

• Starting a business

It’s not about putting everything towards your future.

It’s about striking the right balance between your present, and your future, that helps you get to where you want to be.

Your Future Will Suffer

Many people can’t delay gratification, which means they’re putting their current self over their future self… all the time.

I’m not saying you should always be putting your future first, but it really helps to do so every once in a while.

• Building an emergency fund.

• Investing into ETFs.

• Buying instead of renting or leasing.

Every dollar or pound that you put towards your future will make your life fundamentally better.

Nobody Even Cares

I was with my friends a while back, and one of my mates who shall remain nameless, turned up in a pair of Gucci flip flops.

He said they cost him £300.

We mocked him for 3 hours straight.

Why?

• They looked terrible.

• He didn’t stop bragging about them.

• All he did was make someone else richer.

It’s nothing but a projection of your own insecurities, and through seeking the validation of others, people will notice this.

Nobody is actually bothered by what you spend your money on, and when you’re wasting an entire weeks pay on a pair of flip flops, ask yourself…

Do you really think other people would be impressed by this?

How to Avoid The Image Pandemic

Here’s the extreme answer:

Delete Social Media

That’s what I did.

I prefer living without it. It gave me no value, and all I did was consume mind-numbing content which only showed the best of other people.

It’s genuinely damaging for people like myself who don’t create (personal) content.

If you’re just seeing the best of people’s lives, you think you’re falling behind, which you’re not.

So, I got rid of it. Do I recommend you do the same?

Truthfully, yes, but it’s probably not going to happen.

So… I have some other solutions for you.

Put Yourself on A Pedestal

Listen, don’t be an asshole, but a great way to avoid the image pandemic is to put yourself above it.

Look down on it, and see it for what it is.

• Immature.

• Stupid.

• Bad for you.

There’s an element of financial peer pressure within the image pandemic, and because everyone’s doing it, you feel obliged to comply.

Not.

In a weirdly narcissistic way, you just have to see your wealth building mission (even if it isn’t glamorous) as the superior journey.

And after a while, some people close to you might even come to their senses and side with you.

Think Long Term

This was a huge help for me.

So many people my age can’t see past next week.

Me? I don’t care what happens today, tomorrow, or even this year.

So much of what I do today is for my 30, 40, 50 year old self, and although it sounds miserable, it genuinely isn’t.

I’m excited for my future because I refuse to comply to the image pandemic.

I want this for you too, so, next time you’re concerned about your image, remember these things:

• People don’t care about you as much as you think.

• Your future self wants you to prioritise it.

• One day, you’ll be seen as the smart one, because the image pandemic will soon be over.

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