It’s no secret that comparing yourself to others can have an unhealthy result, but the habit is ingrained in many of us from an early age. After all, it’s incredibly easy (and natural!) to compare everything from our physical appearance to our cars, homes, clothing or even our careers and financial situations. Add social media to the mix and boom—it’s a recipe for emotional (and potentially financial) disaster.
We bet you’re familiar with the feeling: that friend’s vacation post may be cool, but it can also be a downer if you’re struggling to save up for a vacation yourself. And, it may make you consider booking a trip yourself even if it’s not the best financial decision at the moment. (The Instagram-photo-to-debt pipeline is very real!)
If comparison is stealing your joy, it’s time to put an end to envy and set some healthy boundaries around comparison-inspired spending. Here are a few tips to help you avoid the comparison trap and prioritize your financial wellness.
Save before you spend
If you’re tempted to spend money on expensive clothing, new technology or a vacation, for example, hit pause before pulling out your credit card. Understanding that these are ‘wants’ and not needs, price things out and make a plan to pay for them. Ideally, this will involve saving money towards the purchase rather than going into debt to pay for it. You may want to set up an automated payment or physically put $10 in a jar each week—whatever works best for you. This will involve patience on your part, but you’ll end up spending less in the end thanks to the elimination of interest payments on borrowed funds. And, that trip will be even more enjoyable when you’ve anticipated it, saved up and paid for it outright.
Spread out your purchases
If you have several large purchases in mind, sit down and create a timeline for them. It’s more realistic to avoid (or reduce) debt when buying things weeks or months apart rather than all at once. You’ll still want to research costs and save ahead of time—just like in the tip above—but also plan these purchases in a way that allows you to save up in between items. For example, if you need a new laptop, postpone that vacation for six months or a year. Prioritize the order of your spending based on what can wait versus what you need immediately, and enjoy some breathing room to save/pay down debt between purchases.
Forget the Joneses
There are things we genuinely want and things we’re tempted to get to keep up with the Joneses. If your wants are based on status more than actual desire, consider taking them off the list altogether. After all, social media is a highlight reel—not a reflection of real life. If you base your spending habits on what you’re seeing online—the best and most exciting or impressive moments that people want to show off—it will be nearly impossible to live within your means and avoid excessive spending or debt. So, the next time you feel tempted to order a fancy new product, hit the spa, sign the lease on a new car or book a trip, ask yourself if it’s something that really matters to you. At the end of the day, your ‘wants’ may be fewer than you realized.
For personalized financial advice, please reach out to Interior Savings. We’d be pleased to hear from you and help improve your financial health.