Social comparison can lead to poor financial choices from "summary" of PSYCHOLOGY OF MONEY. by MORGAN. HOUSEL
When we compare ourselves to others - whether it's our friends, family, or even strangers on social media - we often fall into a trap of making poor financial decisions. This is because social comparison can skew our perception of what is truly important when it comes to money. We may feel pressured to keep up with the spending habits of those around us, even if it means going beyond our means. This can lead to impulse purchases, unnecessary debt, and overall dissatisfaction with our financial situation. Moreover, social comparison can create a sense of inadequacy or envy when we see others flaunting their expensive possessions or luxurious lifestyles. As a result, we may feel the need to spend money on things we don't actually need in order to keep up appearances or feel better about ourselves. This can ultimately lead to a cycle of ...
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