Understanding and Dealing with Social Comparisons

Sociologists have been studying social comparison theory for years and their findings are interesting. In summary, it’s human nature to draw comparisons. Not only that, we’re more likely to compare ourselves to those who are higher up the social scale that we are (downward comparisons aren’t as common).

Look around you. Do you live in the smallest house in your neighborhood? Does everyone else around you wear nicer clothes or drive never cars? If your social circle seems a little top-heavy, you may be setting yourself up for financial trouble.

Research also shows that those who perceive their income to be less than those around them (regardless of reality) engage in conspicuous consumption at a higher rate than those who don’t. Some people try to even the playing field by buying the same type of car, house and clothing as their neighbor, friends or family. However, sometimes that sense of status is achieved at the expense of one’s financial health. Simply stated, our fixation with Keeping up with the Joneses is getting us into financial trouble.

Once we’re aware of the psychological processes that take place, we can actively try to change them. Getting these emotions in check and separating fact from fiction can help you get a better grip on your spending.

Step #68: Be Aware of Media Influences
Step #68: Be Aware of Media Influences

Step #69: Get Off the Hedonic Treadmill
Step #69: Get off the Hedonic Treadmill

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