Why is everyone richer than me

Is everyone richer than you, or is it all just a big facade? There are plenty of people that handle their money wisely, invest consistently, and make bank every year. But does everyone have more money than you? And despite the highfalutin lifestyles of the people you assume have money, you might be surprised to discover a lot of them have significantly less money than you.

Let me explain. In fact, the vast majority of people that drive a nicer car than you, wear nicer clothes, or live in a more expensive home, borrowed the money to purchase them. They either took out a loan, or used a credit card.

Therefore, in reality, they just owe a lot of money to somebody else. Remember, when you borrow money, it has to be paid back. They are good at creating the illusion of wealth; which is exactly what we will discuss next.

This is the concept of living beyond your means, in order to create the illusion that you actually are wealthy. It is a dangerous way to live, because it can all come crashing down at any moment. But, when times take a bad turn—whether it be a stock market crash, or a company-wide layoff that leaves you jobless and unable to pay your monthly debts—the illusion of wealth disappears, and you are left broke and desperate.

So, why is the illusion of wealth so prevalent in our society these days? I believe it can be boiled down to the following 2 things. And, how long would you really follow somebody that posts stories bragging about the CD player in the 12 year old Camry? Probably not long. Social media can be a fun, relaxing escape from everyday life, and there are a lot of people worth following. But you have to remember that most people only post about the best, most expensive and luxurious parts of their life.

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But wealth is about much more than money. See how and some of the steps you can take to start building more wealth today. But looks can be deceiving. Instead of selecting an arbitrary measure of wealth, define what is important to you. Then, you can determine how much income and savings you need to have what you value.

Debt is the biggest source of financial stress in the U. Moreover, one in four respondents reported having student loan debt, and nearly a third said they have auto loan debt. Follow Along: 31 Days of Living Richer. The key is to avoid high-interest debt — such as credit card debt — and to keep low-interest debt — such as mortgage debt — manageable by not taking out loans that stress your cash flow.

The key is to increase the amount you save as your income increases. Kay recommends comparing where you were financially a year ago with where you are today. Has your net worth grown?