Many a time, you have desired to own that same luxury car, that magnificent house, and those manicured lawns, all of which belong to your neighbor. You have often longed for expensive holidays they take at least twice a year. Well, there are various reasons why your neighbors are able to afford things which you have often yearned for, but could neither fathom nor muster up the courage to splurge on. Here's why your neighbor has more money in their banks than you:

It’s All About Your Perception

First of all, things aren't always how they appear. They seem all the more affluent because you perceive them to be. You only concentrate on the surface but have no perception of the reality that lies underneath. Everything that glitters is not gold!

Allocation Is Important

While you are more inclined to save your money for your kids’ futures and for your retired life, your neighbor could be shelling out some extra money on homes and cars. Your priority is different. You have opted for peace. You have chosen to invest on both today and tomorrow. It’s how your neighbors have chosen to allocate the income that makes them look richer from the outside.

Perks Have A Role To Play

While the guy next door might rake in a higher salary than you, it might not be enough to justify their quantum leap. Fringe benefits, though, can prove to be the deciding factor. Receiving perks at work such as laptops, phones, and cars can widen the gap and provide your neighbor with an amazing leg up.

They Have Invested In Luxury

As families attain a matured age, savings tend to grow. Even if their children attend the same school as your kids do, they would be of an older age and the adults might be your senior, too. Instead of investing in those extra years and stacking up money in their banks, they have invested in luxury. Imagine to what extent a financial freedom would you be able to receive if you didn’t have to rack your brains on a monthly mortgage.

They Might As Well Be Leading A Plastic Life

There are high chances that your neighbors might enjoy the life of a plastic. While you have a complete knowledge of what the consequences of being undisciplined can be, your neighbors might be leading a carefree life, settling for a short-term luxury and a meager future.

They Are Aware Of Where To Seek The Best Deals

There is a high probability of your neighbor knowing exactly where and how to find great deals — be it clothing, furniture, or groceries. Perhaps, they are also conversant in searching out the deals on the things they require which helps them in saving more currency for the other items on the list.

They Shell Out Money On Their Immediate Needs

The difference primarily lies in prioritizing. While you may think that your neighbors are making more money than you, you need to keep in mind that they often end up paying a fortune on luxuries and projects rather than accumulating their net worth in the banks. Your dreams might be different as you intend to focus more on your family and their basic needs. You want your dear ones to have a brighter future, and that’s where your priorities lie. The fact of the matter is, you are saving for the times you haven’t seen, while your neighbor is more inclined to satiate their momentary desires.

Should You Worry About It?

Without diverting your attention towards what your neighbors are up to, focus on saving more. They might be leading a rented lifestyle and splurging on materialistic needs. Instead of building assets, they prefer to lead a life on liabilities, and this mentality might prove to be disadvantageous in the future. Your family is more important to you, not luxury. For your affluent neighbor, it’s the other way round. If you don’t live a king’s life today, it doesn’t imply that you will lead the life of a pauper tomorrow. Save as much as you can. Spend only where it’s needed.

Who knows what’s in store for the future? Shelling out money at the drop of a hat will only lead to a deficiency that you wouldn’t be able to manage once time runs out. Also, a lot depends on your perception since what appears from outside need not be the same from inside. So, live your life the way you want.