5 Reasons why you might be financially worse off than colleagues on the same pay!


He earns the same amount as you do, why do you appear worse off?

It is simple, your expenses are more than his or his total income is more than yours.

The following issues below are, in my experience the top reasons why people with a similar income stream may appear worse off than others.

1. Paying back previous and new indebtedness– Debts could be in many forms. Not just loans and costs of overdrafts, but the costs of keeping your credit card (if you are making the minimum payment); the cost of those “buy now pay later” deals that you are enjoying. The outstanding student loans and other deferred payments to which you are committed. Some people are actually still paying for things they are no longer using simply because they bought it and were allowed to pay later, some long while ago. Stay clear of things of no life changing value that commit you to payments in the future!

2. No alternative income source– The folks who appear better off sometimes have an alternative income source that you are unaware of. Some potential source of regular or irregular additional income. A little bit from shares or rent on something or some property they own or have inherited.  Some steady cash flow from previous savings or ongoing savings and other bank instruments. They may have a small enterprise activity they are involved in; it’s not the size of the alternative income that matters; it is the fact that there is an alternative income source; that is sometimes enough to make the difference.

3. No financial cushion of last resort- Many people have a last resort option. Sometimes it’s a parent or family member or close friend whom they know that should the worst come to the worst will bail them out. If people have this they may be less careful in spending and have little or no perceived need for any kind of savings. On the other hand you might be the person who is the last resort for your family and friends in which case you need to be prepared for other people’s emergencies, plus yours. This can be a significant differentiating factor in what available finances a person has.

4. Wrong priorities; keeping up with the Jones-es- The fact that you are reading this could suggest that it has been something you have worried about, before; that you have less money than your colleagues. The good question to ask is if your financial decisions have previously been motivated by keeping in line with these folks. Getting the most up to date smartphones, the most modern TV sets or purchasing such things that drain your pocket even further before you can fully afford them. If you keep on this track, you will consistently be worse off in the pocket and rich in plastics and metals with a two year life span.

5. Those guys might be living above their means– The ultimate reason why you should not compare yourself to anyone in principle is the fact that it is one of the greatest signs of a lack of self confidence, contentment and gratitude. But has it ever crossed your mind that the people to whom are are comparing yourself could possibly be living above their means. The hard  unspoken truth is that people who live consistently above their means for whatever reason will ultimately crash at some point. You don’t want that to be you, so why should you envy someone on the path to a crash.

Now the above 5 reasons is no justification for you to the worse off person. The way out is two fold; either by reducing your expenses or by increasing your income. For practical ways of achieving these, stay tuned with me on the blog.

Have a brilliant week.


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  1. I have a friend who usually complain of this – always comparing himself with his friend. I think this might just be good for him.

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