Here are 3 Untold Reasons Others Seem to be Doing Better Than You Financially

cf815Humans are competitive by nature, and that’s necessarily a bad thing. Our competitive nature stems from the fact that we are often concerned about our status relative to our peers or others in our social class. Hence, your self-esteem might enjoy a massive boost when you observe that your spending is higher than the average spending of people in your social class. In contrast, most folks might start losing sleep when they observe that their spending is below the average of their peers and they are not able to keep up with the Joneses.

You might catch yourself being ‘nosy’ when a colleague says he bought a new vacation, the neighbor is remodeling their house, or your best friend shows up with a new car. There’s a natural tendency you’ll want to find out how your neighbors are able to afford those shiny new toys. This piece discusses 3 usually untold reasons others seem in a better financial position than you are.

  1. Maybe they have a better handle on debt

One of the untold reasons some folks might be getting ahead of you financially is that they might have a better handle on debt. Debt could be a great ally if you don’t bite off more than you can chew, make payments when due, and strive to pay more than the required minimum. In fact, some folks can still get loans despite having bad credit by looking in the right places. Hence, when next you catch yourself getting jealous because your peers seem to be getting ahead of you financially, you should stop to consider the possibility that they might have some debts.

  1. Maybe they have some unspoken deep pockets

Another reason your peers could be doing much better than you financially is that they might have a financial support system that they never speak about. Most young professionals battle with a mountain load of student debt because college is expensive. However, your friends that paid their way through college, won full scholarships, or whose parents/relatives paid their tuition might not have student debt. Hence, at the end of the month when you receive your paychecks, your colleagues who have no/low student debt will have more money to apply towards savings for specific goals.

You should also consider the possibility that some of your ‘peers’ have trust funds that they never speak about because they want people to accept them for who they are and not because of their privileged backgrounds. In addition, some folks could make some speculative investments that turned out right to give them massive ROI.

  1. Maybe there’s an opportunity cost you don’t know

The third reason it doesn’t make sense to start losing sleep over the fact that others are seemingly doing better than you financially is that there could be an opportunity cost you don’t know about. In reality, you can buy just about ANYTHING you want, you just can’t buy EVERYTHING you want.

In essence, when someone shows up with a brand new car, you never know maybe they  just cleared out their retirement savings and they are going to have to keep working until they drop dead. More so, people make trade-offs in their spending decisions at the expense of some other stuff. Hence, the neighbor remodeling their house might have decided not to save up towards the kids’ tuition.

Save More Money in 2018

Coins 1523383 1920

Subscribe and join the worldwide 52-week money challenge! Get the tools you need right to your inbox.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
Pitfalls of Voluntary Servitude

Save For a Rainy Day and Avoid the Pitfalls of Voluntary Servitude

Debt has become such a given in our culture that many of us take large amounts of it on without giving it a second thought. We Americans... more →