Why do all my friends all seem financially better off?

Why do all my friends all seem financially better off?

Posted 27 December 2018. Categories: Personal Finance.

If you sometimes feel inadequate when chatting with friends and colleagues or browsing social media feeds of old classmates, take a moment to pause and realise you're not getting the full story. It's been said of social media in particular, we see everyone else's highlights reel, while only seeing our own blooper reel.

Even if someone seems to be financially better off than you, it could have nothing to do with personal achievement. A lot of people can be struggle with set backs behind the scenes that you wouldn't ever wish for.

Life isn't a sprint, it's a marathon. Just because you haven't achieved your ambitions yet doesn't mean you never will, and it's important to realise that there's always help available – emotional as well as financial. Here are some questions to ask yourself that your friends might well answer differently.

Living within your means

You don't always know whether the expensive car and luxury holidays your friends are boasting about have been paid for through hard work or high-interest loans on top of other loans that could lead to more serious financial problems and stress in the future.

At the very least, you should always make sure you set aside enough of your income each month to cover necessities like rent, food and bills. If you have anything left over to put into savings, one day you'll thank yourself for not splashing out on extravagant purchases you can't afford.

Financial support

You may be living independently off your own income and paying your own rent or mortgage, but that isn't the case for everyone. When it comes to big ticket items such as a house or holidays, many people get a helping hand from the bank of mum and dad well into their adult lives, others marry into wealth, and some simply get lucky in other ways.

It comes down to your personal circumstances and your attitude. Some people with well-off parents prefer to go it alone, while others may beg for a helping hand and be denied by parents who want their children to stand on their own feet as they always did.

Loss of loved ones

Parents and other family members can continue to provide support after they pass away if they name younger family members in their wills. If someone you know has suffered a loss, you should think twice before criticising their newfound wealth that may have been received at a great cost.

Take control

Having people to compare notes with can be a good motivator in life, but you shouldn't get too wrapped up in other people's finances at the expense of your own. Focus on what's important, set realistic goals and make sure you're budgeting correctly, and you'll be the one in charge of your financial future.

General Advice Disclaimer

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

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