The urge to compare yourself and your accomplishments to that of your peers, colleagues, and neighbors is only human. But these days, with social media broadcasting globally 24/7, it’s not just your neighbors and peers you might feel competitive with. It’s the entire world.
That kind of pressure has created a phenomenon known as "fear of missing out" (FOMO for short) or "comparison culture," (once commonly referred to as "keeping up with the Joneses,") which can exert a powerful, not always positive influence on life in general and your personal finances in particular.
Spend time not money
In a world where material possessions are often equated with success and happiness, the pressure to spend beyond your means can be overwhelming. And with such easy access to credit cards, often with high-interest rates, it’s easy to fall into a pattern of overspending that might come back to cause you financial problems down the line.
Comparison culture can lead to unsustainable spending habits, questionable lifestyle choices, and an unhealthy mindset. While there’s nothing wrong with buying expensive clothes and fun gadgets, shifting your focus to pursuing genuine experiences, authentic connections, and personal growth can liberate you from the consumerist trap and contribute to long-lasting fulfillment.
The reward of gratitude
Comparison culture can have profound psychological effects on individuals, triggering feelings of inadequacy, envy, and anxiety. These emotions can take a toll on your mental well-being and seep into your financial decisions. It’s important to learn how to develop a sense of independent thought and self-awareness. Practicing gratitude (being thankful for what you do have, not what you don’t) can help counteract the negative impact of comparison culture. By embracing your own unique strengths and appreciating your individual journey, you can seek to foster a more positive and empowering relationship with money.
Navigating peer pressure
Peer pressure is not limited to adolescence; it can persist throughout adulthood, particularly when it comes to finances. Being aware of your susceptibility to peer influence can empower you to make independent financial decisions that align with your priorities. Open and honest communication with friends and family about your financial goals and boundaries (or even problems) can break barriers and also help you reduce the pressure to conform.
Cultivating a healthy financial mindset
At the core of achieving financial well-being lies a healthy attitude about money. Embracing a growth mindset, where financial challenges are viewed as opportunities to learn and improve, can help you make informed and wise decisions. Engaging in financial education and learning from your mistakes can all contribute to cultivating a resilient financial mindset.
To that end, regularly review your budget and credit card statements. If you’re consistently paying out more each month than you’re earning, or you find it more and more difficult to pay even the minimum monthly amount of your credit card debt, it’s time to have an honest talk with yourself about how to reset and get on a healthy financial path.
The power of financial goal-setting
Setting clear and achievable financial goals can be key to breaking free from comparison culture's grip. By defining what financial success means to you personally, you can stay focused on your unique aspirations, rather than being swayed by external influences. Regularly review and adjust your goals to help ensure that you remain on track and resilient in the face of distractions.