Article How to stop comparing your finances with others

How to stop comparing your finances with others

In today’s hyper-connected world of technology and social media, it can be easy to fall into a trap of comparing our financial situations with those around us. While making comparisons is normal, constantly measuring ourselves against others can hurt our financial wellbeing and overall life satisfaction.

Here we share 6 practical tips to help you break free from this habit.

6 tips to stop making financial comparisons

1. Define your financial goals

To overcome the urge to compare, it's important to set out the money goals that matter to you. Whether it's saving for retirement, buying a home, or starting a business, having clear goals will help you stay focused on your own path rather than being swayed by the choices of others.

2. Look at how far you’ve come

It can be easy to focus on the here and now, but have you stopped to look back at how far you’ve come? Reflecting on an earlier time – maybe when you just left school or had a lot of debt – can be a good way to recognise the progress you’ve made.

Maybe you’re earning more money than a few years ago, or simply saving more than you used to? Have you put down a deposit for a house or made a significant purchase? No matter how small, celebrating your achievements could build your confidence and will give you something to reflect on in moments where you find yourself unhappy with your finances.

3. Practice gratitude

Similarly to acknowledging your progress, having gratitude is a powerful tool to combat the urge to make comparisons. It can help shift your focus from what you lack to what you already have – such as a stable job, good health and supportive relationships. Keeping a ‘gratitude journal’ is a good way to recognise all the good in your life and has been found to increase optimism levels.¹

4. Spend less time on social media

From a new car to luxury holidays, social media is often a perfectly curated snapshot of someone’s life. But remember, it’s unlikely to be a true picture of their financial status. If you feel a pang of jealousy next time you’re scrolling, be proactive and unfollow accounts that cause you to feel  unhappiness with your own financial situation. Consider swapping out your scroll time for activities that support your financial wellbeing, like learning about your pension or how to review your budget.

Social media can be a great way to stay connected with family and friends, so it’s unrealistic that you’ll avoid it entirely. You could also try filling your feed with more positive comparisons and inspirational accounts, which we’ll cover in the following section.

5. Swap comparison for inspiration

It’s normal to compare ourselves to others – we’re only human after all. While we can’t stop these instincts, we can substitute negative comparisons for positive inspirations. Rather than comparing ourselves to someone whose wealth seems out of reach, look for more attainable role models.

Try to find someone similar to you who lives locally, is roughly the same age and whose success you think you can achieve. When it comes to financial decisions, think about what that person would think and do. Learn from their experiences and strategies, but remember that your journey will be unique. Support this with educational resources, such as books, podcasts, or reputable financial websites, that provide valuable insights and guidance without triggering comparison.

6. Remember that times of adversity are to be expected

It’s important to remember there might be times where your financial status isn’t always on an upward track. This is normal and happens to many of us. Over the course of your life, you’re likely to face:

• Financial crises (markets will go down)
• Economic crises (many people might lose their jobs)
• Personal crises (divorce, redundancy, illness etc)
• Other crises (for example of political or public health nature, etc)

If you find yourself in one or more of these scenarios, remember that you won’t be the only one experiencing this, and that you’re not alone.

Learn to make the most of the money you have in these times. Do things you enjoy as a reminder that you can still have fun, even with slightly less in the bank. You can find more information on surviving a crisis and beating investment panic in our Financial wellbeing index.

Find peace with your finances

There’s nothing wrong with wanting more in life, and it’s healthy to have attainable goals. But don’t let this stop you from appreciating what you have in the present. It’s easier to change a habit than to stop it entirely. Take small actions to improve your mindset over time, and it could help you to make healthier comparisons.

If you need reassurance or help managing your money, you could consider speaking with a financial adviser. While an adviser can’t guarantee to increase your finances, their support might give you that confidence boost you need when it comes to money management. You can find an adviser on MoneyHelper – there’s likely to be a cost for financial advice.