Why You Feel Poorer Than Others: Psychology, Social Comparison & How to Build Real Wealth
How To Act About It
Do you often feel that everyone else around you is richer, buying expensive cars, traveling, and living a glamorous life while you work hard but still feel financially stuck? This feeling is common and deeply rooted in human psychology and evolutionary history.
Also Read: Angel Investing in Bharat: The New Wave of Micro-Angels
Understanding Why We Compare Ourselves
Comparison is ingrained in human biology. Early humans survived by assessing who had the best resources and social alliances. This survival mechanism made us constantly compare our status to others, it’s not just a habit but an ancestral trait. Today, this programming causes anxiety and stress, as the brain thinks it might be a life or death matter, even though that’s not true anymore. Social media and the internet amplify this by showing only the best highlights of others’ lives, making us feel worse about our own.
The Trap of Regret and Anxiety
Anxiety is about fearing the future, which we can’t control, while regret is about past decisions we wish were different.
People often look back at missed financial opportunities with regret, but dwelling on the past doesn’t help.
– Instead of focusing on what you lack or what others have, bring your attention to the present moment and what you are grateful for.
Why People Spend on Status and Debt
Market data shows increasing demand for premium and luxury goods as status symbols, while basic, economical products decline.
Easy access to consumer loans, credit cards, and Buy Now Pay Later schemes lead people to spend beyond their means.
Household debt has risen significantly, often fueled by small loans from fintech companies, but many borrowers lack creditworthiness.
People often forget that buying something on loan doesn’t increase net worth; it increases liabilities.
Also Read: Personal Finance Red Flags Related To Spending Habits
The Real Components of Wealth
Money for fulfilling desires and security
Time control over your own daily life
Physical health essential for quality of life
Mental peace free from anxiety and fear
Strong relationships which bring purpose and happiness
Focusing solely on money leads to imbalance and unhappiness.
Practical Steps to Build Real Wealth
Stop comparing yourself to others; it’s an outdated survival instinct that doesn’t serve you now.
Practice gratitude to center yourself in the present and reduce anxiety about the future or regret about the past.
Be mindful about purchases; buy only what you truly need, not just for status or appearances.
Avoid excessive borrowing; consider the long term impact on your net worth.
Focus on holistic wealth encompassing health, time, peace, and relationships alongside financial growth.
Social comparison causes stress and poor financial decisions. Building wealth requires not just increasing income but managing desires, spending responsibly, avoiding debt traps, and balancing money with time, health, peace, and relationships. True wealth is holistic and sustainable, not just visible consumption. Practicing gratitude and staying present can reduce anxiety that often leads to impulsive spending.
This approach fosters financial well being and mental peace, essential for long term success and happiness.
Team: Credit Money Finance
Also Read: Why Every Startup and Growing Business Needs a Virtual CFO And Why IntellexCFO Is Your Best Partner