I am not really into New Year’s resolutions probably because I either fail them or forget them but last year in 2025, I made a pact with myself: “Stop comparing myself to others.”

That meant no longer comparing how I look, my weight, my fitness, my skill level at different sports, my finances, my career, my relationship, and not even comparing myself to the younger me.

I made a considerable effort to shift my mindset last year, and that commitment was solidified during one of my yoga classes, where the instructor read a passage from Brianna Wiest’s book, The Pivot Year. What resonated was the importance of being comfortable with who you are, because most of us change ourselves to suit circumstances, but in doing so, we rob our true selves of happiness.

Now that may sound deep for a Saturday morning, but it is true and it is often driven by comparing ourselves to others. So, throughout 2025, I changed my mindset, stopped comparing, and I have never felt so liberated and I simply just don’t care.

But let’s face it: in reality, it is human nature to compare. One of the biggest struggles people face is comparing their finances and wealth against others, because it triggers a multiplier effect: we obsess over what our peers possess and will do whatever it takes to keep pace.

In the world of social media with the glamorous lifestyles of celebrities, influencers, and posts from family and friends, it is easy to fall into the trap of comparing your financial situation to others.

The sad truth is that comparison, especially related to wealth, can have serious repercussions on your financial stability and overall wellbeing. Understanding these dangers is essential for cultivating a balanced, realistic, and healthy approach to personal finance.

The dangerous art of constant comparison can also undermine your focus on financial independence. Instead of prioritising saving, investing, and responsible spending, you might feel pressured to display wealth immediately, risking your financial stability for short-term appearances. This mindset can lead to neglecting fundamentals such as budgeting, debt management, and long-term planning.

Furthermore, comparing your finances to those of others can carry a subtle yet steep psychological price tag. Measuring your own wealth against someone else’s often stirs feelings of inadequacy, envy, and diminished self-worth, which can provoke jealousy and discontent with your own circumstances.

This habit of comparison can lock you into a mindset of scarcity, shifting your focus from what you have, to what you lack. The resulting dissatisfaction may cloud your financial judgment, prompting impulsive spending in an attempt to “keep up” rather than making grounded, rational financial decisions.

A common consequence of comparing yourself to wealthier peers or family is the tendency to overspend. When you see others living luxuriously or possessing things you do not have, you might feel compelled to emulate that lifestyle, even if it is financially unsustainable.

This can lead to impulse purchases, credit-card debt, or taking out loans to fund an appearance of wealth that is not backed by your income or savings.

Moreover, the desire to project an image of financial success often leads to a cycle of living beyond your means. This not only jeopardises your long-term financial health but also increases stress as debt accumulates and savings shrink.

The pursuit of instant gratification, fuelled by social comparisons, can derail important financial goals like saving for retirement, buying a home, or building an emergency fund.

To mitigate these dangers, cultivating financial self-awareness is crucial. Instead of measuring your progress against others, focus on your own financial goals and values.

Create a personalised budget, track your expenses, and set achievable milestones based on your income and priorities. Recognise that wealth is relative, and true financial health is about stability, security, and peace of mind and is certainly not about social validation.

Practising gratitude for what you have can also shift your mindset from scarcity to abundance. Appreciating your progress, whether it be paying off debt, increasing savings, or building your net worth, fosters a healthier outlook and motivates continued growth without the need for external validation.

Developing a healthy perspective on wealth involves understanding that material possessions do not define your worth or happiness, no matter how much social media tries to convince you otherwise.

Your finances and your wealth are tools to support your life goals and wellbeing, not a measure of your personal value. It is imperative to avoid the trap of comparing your behind-the-scenes financial reality with someone’s highlight reel on social media.

Educate yourself about personal finance to make informed decisions and remember that sustainable wealth is built over time through consistent, disciplined effort.

Ultimately, the most empowering financial shift you can make is to stop comparing your wealth against others.

Instead, redirect your energy inward and focus on your own path: set personal goals, track your progress, and practise gratitude for how far you’ve come.

Understanding that wealth is deeply personal and relative fosters not only greater financial stability but also lasting mental peace and fulfilment.

True financial wellbeing springs from wisely stewarding your own resources and aligning your spending with your values, not from looking sideways at someone else’s life.

References

Dunn, P. (2022) Don’t compare your finances. It doesn’t matter. Indianapolis Business Journal. Available from: https://www.ibj.com/articles/dont-compare-your-finances-it-doesnt-matter. [Accessed 7 February 2026].

Morin, A. (2019) How ‘Keeping Up With The Joneses’ On Social Media Is Damaging Everyone’s Mental Health. Forbes Magazine. Available from: https://www.forbes.com/sites/amymorin/2019/11/25/how-keeping-up-with-the-joneses-on-social-media-is-damaging-everyones-mental-health/ [Accessed 7 February 2026].

• Carla Seely is the chief operating officer at Freisenbruch Insurance Services Limited and has 26 years of experience in the international financial services, wealth management, and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI qualification through the Chartered Institute for Securities and Investments (UK), the qualified associate financial planner (QAFP) designation through FP Canada, and the associate in insurance (AINS) designation through The Institutes. She also completed a Master’s Degree in Business and Management through University of Essex

• For further inquiries or suggested topics, e-mail: justaskcarla@outlook.com