How to Stop Comparing Your Financial Situation to Others

 

Rachel Slifka

 

Whether out of curiosity, jealousy, or superiority, we are all guilty of comparing our finances to other people.

 

We ask ourselves questions like:

 

“How much money does she make compared to me?”

 

“How can he afford to live like he does?”

 

“How much more debt does she have than I do?”

 

With social media being more prevalent than ever, we have an in-depth look into other people’s lives. We see our friends going on fancy vacations, buying houses already, or purchasing brand new cars, and we want to do that too.

 

The truth is, just because we think we have an idea of someone’s financial situation doesn’t mean we know for sure. Everyone is different, and it is impossible to assume correctly.

 

Whether you’re comparing to beat yourself up or to make yourself feel better, it has to stop.

 

Why we should stop comparing our financial situation to others.

 

Comparison is dangerous. It causes us to become emotional and generally feel badly about ourselves. Whether it’s a brief moment of sadness or a full scale depression, comparing ourselves to others does us no good.

 

Constant comparison demonstrates some ugly results, such as:

 

1. Using others’ unfortunate financial situations to feel better about our own.

2. Making excuses and losing power over our finances.

3. Disregarding our budget, potentially resulting in more debt.

4. Becoming ungrateful for what we have.

 

So how do we actually stop comparing our financial situation to others?

 

Practice gratitude

 

Being grateful for what you already have is a powerful thing. When we forget to be grateful, we become envious of others instead.

 

Regardless of how broke we might feel, we can consider ourselves lucky to have a roof over our head and food on the table. It can sound cliché, but many people don’t even have that.

 

Come to peace with your financial situation. Even if you’re the only indebted one of your friends, learn to be okay with it. Because, ultimately, it is up to you to get yourself out of debt and anyone has the power to do so.

 

To become more thankful, practice this simple exercise. Write down 3 short bullet points of what you are grateful for every night before bed. You’ll soon realize that, in retrospect, you are actually pretty well off! I promise, practicing gratitude is life changing!

 

Know your budget and stick to it

 

In order to succeed financially, you have to be honest with yourself. Can you afford to keep up with the Joneses?

 

Every budget is unique, and every individual has their own values. Why try to keep up with someone whose situation is entirely different from yours?

 

Be honest with yourself and what you can afford. Save money for the fun things you value, whether it be night life, travel, or food. Regain control over your finances instead of letting your finances and other people control you.

 

Budgets don’t have to be restricting. In fact, you’ll undoubtedly find that your budget allows you to do more of the fun things you want to do.

 

Get angry at your debt, not your situation

 

So often, people pity themselves and make them out to be the victim of their financial situation. No matter what excuse they might give, the truth is that they made some poor financial decisions.

 

So maybe you made some mistakes and aren’t in the best place financially. Instead of worrying about that, shift your focus to plan how to get out of debt. Get angry at your debt, and pay it off as rapidly as possible.

 

When you’re focused on others’ financial situations, you never stop to confront your own. Be honest with yourself about where you are and where you want to be. The motivation there should be all-consuming.

 

When I think about my student loans, it gets me so motivated that I truthfully don’t care to compare myself to others. Confronting your own situation is empowering.

 

The good news is that we all have so much power over our own finances, Budgeting gives us control over our current money. At the same time, we can focus on earning more money outside of our 9-5 job. Side hustles are a fantastic way to increase your income while keeping you occupied so you are less likely to compare your financial situation to others.

 

Comparing your financial situation to others takes up so much time and energy that could be used to better your own finances. No matter where any of us are financially, there is always room for improvement, and that’s where all of our attention should be going.