I don't think knocking down your house and building a McMansion in it's place is keeping up with the Jones's.. if you can swing it and you don't think it looks ridiculous to put that much house on that size lot then go for it..even if you ARE doing it because your neighbor is doing it (which I suppose is textbook definition), property value is a community effort. The next door neighbors to my first apartment renovated their house to be similar in style to the one I lived in. Copying? Sure. Does it look better, add curb appeal and therefore, value to both homes, yes! So justified IMO.

I think at the holidays is when you can really see what's what on this question. I see it as a mom - I mean how many people drove themselves CRAZY this year to find those freakin Leap Pads because their kid HAD TO HAVE the latest toy? And at times I'm guilty of it too, I'm not at all saying I'm any better or worse.. I've had my share of CC debt because I wanted something name brand TODAY instead of saving for it or buying the cheaper knock off...That's what keeping up with the Joneses is.. and I think we're all guilty from time to time.

The people who have to be first on line for the new IPad 3.. do you HAVE TO BE the first? I have a friend whose got a $10k plasma tv hanging on her living room wall. She was the first! They live a good life but that TV was certainly out of their budget, even if they're not in debt today.

The question comes down to this: if tomorrow, you can't afford all the fabulous stuff you can afford today will you be able to deal? Or will you find a way no matter what to maintain the standard of living you're accustomed to?

And Jones, as far as I'm concerned, is not any one of us.. Jones is marketing. Jones is Bloomingdales, and Nordtrom and Apple and BMW.. (and I just picked products/places I like.. I like Jones, and I don't think that's bad either)