Are they really as happy as they seem? Are they perhaps secret millionaires? Will you ever be able to provide the same lifestyle for your family? While comparing yourself to the ‘Joneses’ is probably normal… I mean we all do it from time to time, and hope we could have the house, car and perceived purchasing power of a neighbor. We’ll never really know what is actually going on behind closed doors, but we all remain free to wonder.
There are several reasons for your neighbours fancy lifestyle, while the obvious is that they are simply filthy rich, there could be other less appealing factors that your haven’t considered:
Perception is everything
Just because they seem wealthy, doesn’t not mean that they actually are rich. For all you know, their lifestyle is funded by large amounts of debt and loans. They may have a better vehicle than you do, but at least you own your car, whereas the bank owns theirs. Credit is not money even though it may give you the purchasing power to buy anything you wish. Credit is not your friend as it may lead you down a vicious road of indebtedness.
Unlike you, they cater to their wants
As individuals we have different financial priorities. Whereas, you may invest in long-term policies for you children’s education or retirement fund. They may cater to their present material wants and could be financing their expenditure by using their savings. While, this presently gives the ‘Joneses’ stronger purchasing power, in the long-term you are building assets for you and your family.
Your neighbours’ may not actually earn more than you perhaps they receive work related perks like a company car, petrol allowance or a cellphone allowance. These allowances allow for more disposable cash to be freed up, as a result, they are able to afford luxuries that you may not.
They are superb as spotting deals
The ‘Joneses’ are just awesome at managing finances. Spotting bargains or always hunting for cheaper deals is a great way to purchase whatever you may want or need, yet still have cash to either save or spend elsewhere.
They have fewer debts
For all you know, over the last few years, the ‘Joneses’ may have deposited extra cash to ensure they pay off all big debts like their mortgage bond or vehicles. This way they have been able to square up these expenses, therefore, have more funds available to play around with.