Do you find yourself frequently comparing your financial status with others? If you’re candid, you’d likely concede that with today’s prevalence of social media, it can be quite a challenge not to gauge your financial standing against others.
WHEN IT SEEMS EVERYONE ELSE IS AHEAD
Allow me to tell you about a colleague who relocated to a different region in the country about eight years ago. Her cost of living is lower than mine, and she meets the expenses of her children’s private education. Her social media updates show her children actively participating in sports and enjoying delightful family outings. They even vacation multiple times a year, often journeying to places like Florida and the Caribbean.
Each of these posts tends to trigger a twinge of melancholy in me. I can’t help but feel that maybe, I’m making grave financial errors since we don’t indulge in such fun activities as frequently as they seem to.
However, the truth remains that I have no real clue about their financial situation. I’m under an assumption that they have large disposable incomes, but I’ve no way of substantiating it. Such unnecessary comparisons only serve to make me question our financial habits, despite knowing that we are responsible with our money.
WHEN IT FEELS LIKE YOU’RE EARNING LESS THAN OTHERS
It’s another common sensation to assume that others are earning better than you. Unless you’ve literally compared wage slips, you’d never know the reality.
Assuming they earn more can often lead to self-pity. With seemingly more money, they might be able to afford more luxuries than you.
However, you’re also oblivious to their expenses. Case in point, my aunt, who often complains about her earnings compared to her friend, Susan. She loses sight of the fact that, as a single woman, her expenses are far less than Susan’s, who is married and supports two adult children. Despite potentially earning more, Susan’s high expenses can leave her with little savings.
The other issue with such mindset is that people could end up passively accepting their current financial standing. Susan, for example, has a substantial retirement fund, unlike my aunt who, instead of striving to secure her own savings, concludes that it’s simpler for individuals like Susan to save due to higher earnings.
Financially comparing yourself with others is ultimately a pointless endeavor. There are multiple unknowns like their actual income, financial commitments, and possible debts. All these comparisons succeed in achieving is promoting negative self-perception or rationalizing one’s own financial predicament.
