The comparison trap: Keep your eyes on your own prize

Ever looked at your neighbour’s manicured lawn and felt a pang of guilt about your weed invasion that you haven’t sorted out yet? It turns out, that urge to compare ourselves to those around us is deeply rooted in our evolutionary past. Early humans who saw their neighbours thriving with a bountiful harvest were more likely to adapt their farming techniques to improve their yield. This “keeping up with the Joneses” mentality served us well back then, but in today’s hyper-connected world, it can lead us down a dangerous path, especially when it comes to our finances.

The age of the global Joneses

Social media and the internet have blown the doors wide open on comparison. We’re no longer limited to peeking over the fence at our next-door neighbour’s success. Now, we can compare our entire lives – homes, holidays, and yes, even investment portfolios – to people on the other side of the world. The problem is that these comparisons often paint an unrealistic picture. We see the highlight reels, not the daily struggles. We don’t know their starting point, resources, or risk tolerance.

This constant barrage of seemingly “better” financial situations can leave us feeling inadequate and chasing after financial goals that may not be achievable for us, given our circumstances. It’s like the farmer next door having discovered a hidden oil reserve while you’re diligently working your land. There’s only so much you can control.

Charting your own course: The power of goals

The antidote to the financial comparison trap? Having a clear financial roadmap – a set of well-defined goals tailored to your own life. When you know exactly what you’re working towards, whether it’s a comfortable retirement, a dream holiday, or that deposit on a house, it’s much easier to tune out the noise.

Think of it this way: if you’re invested in a portfolio specifically designed to deliver the returns you need to reach your goals, are you likely to get stressed if you hear about someone else’s speculative investment that went gangbusters? Probably not. You’re confident that your strategy is on track because it’s built for you and your unique circumstances.

Financial planning: Your partner in the comparison game

A good financial planner can be your secret weapon in the fight against comparisonitis. They can help you set realistic goals based on your income, expenses, and risk tolerance. They can also help you create a personalised investment strategy that aligns with those goals and your risk tolerance.

So, the next time you fall into the financial comparison trap, remember it’s about making the best use of the land you’ve got. Focus on what you can control – your financial plan, your investment strategy, and your definition of success. By keeping your eyes on your prize, you’ll be well on your way to achieving your financial goals and building a secure future for yourself.