7 Reasons Your Neighbor is Richer than You

Have you ever peeped across the street and stared at your neighbor’s house and wondered how is it that they are richer than you? The number of cars in their garage, the mowed lawn, the furniture in their house and even the number of vacations that they take every year – it just fills you with envy that how can they be richer than you, when you live in the same neighborhood, your children go to the same school, and even your work designations are similar.

Here are 7 probable reasons why it may seem to you that your neighbor is richer than you:

1. He is more Educated

he is more educated

Well, education is not a benchmark for success in life. In fact, many of the world-famous business tycoons didn’t finish high school or are college drop-outs. But let’s be realistic. If you are doing a job, education pays off. Those who are highly skilled and educated have better paying jobs because they are given greater responsibilities at work and hence, a higher pay. This could be one reason why your neighbor is richer than you.

2. He is Better at Budgeting

he is good at budgeting

A major reason why people earning at par with you seem to be richer is because their budget allocation is well-planned. They are clear about a certain standard of living that they want and even if they don’t earn a million bucks, they plan, budget, and save to achieve a certain standard of living.

An effective budget makes it easier to save for the future and also makes a comfortable lifestyle affordable. Budgeting is probably one of the many skills you will need to learn if you too want to be able to afford a comfortable lifestyle.

3. He Gets more Perks

he got more perks

This could be a highly probable reason why your neighbor is able to afford and flaunt all those exotic vacations he takes and gets his house renovated every year or have so many pets at home. His perks could be better than what your company offers you. Greater perks means greater indulgence.

He could be getting a new car or a new laptop or a couple of vacations every year. And this is why he seems richer than you. Because his perks help him live a certain standard of life.

4. He Has a Smaller Family

small family

Yes, when you have a smaller family and your income is high, you are able to spend and save considerably higher. This can be one reason why your neighbor seems richer than you. It could also be that his children are now all grown ups and are earning for themselves and they don’t have any loans or mortgage to pay off and hence are living a comfortable lifestyle.

This is probably a lot to do with them being senior to you in age and experience. They have probably paid off their loans and hence are now able to enjoy the luxuries of life.

5. He Splurges on His Wants

splurges on wants

Your neighbor will seem wealthier to you if he is someone to fulfill all his wants, and take care of his needs later. This is called splurging. While you may be looking at long-term investment and security and hence cutting back on certain luxuries in life, your neighbor chooses to live in the moment. And that’s why he “seems” richer to you, even though you both earn similar incomes.

6. He Has Various Sources of Income

source of income

For most people, their job is the only source of income. But there are a few others who don’t depend just on their salaries to take them through life. They have various other streams of income. It could be blogging, investment returns, real estate, or consulting. It could be anything. But having various sources of income does help.

7. He Knows Where to Get Great Deals From

great deals

Getting deals is a great way of splurging without shelling out a lot of money. Many people find deals for spending on their needs, so that they can indulge in their wants. And your neighbor could be one of those.

Whatever be the reason your neighbor might seem richer than you, now you know how you too can afford a more comfortable and luxurious life. It’s all about managing your finances better. Its not what your neighbor earns, it is all about how smartly he utilizes it.

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