This post was originally published on MoneyNing.
You look out the window of your home each night after dinner, staring across the street at your neighbors.
You long for the cars they drive, their weekly manicured lawns, and even the vacations they seem to take several times a year.
You’re not alone.
I often look out my window, too, staring at the gorgeous homes and cars wondering how they manage to pay for them.
After all, we live in the same neighborhood, our kids go to the same schools, and their salaries aren’t that much more than ours.
There are several reasons our neighbors can afford so many of the things we would love to have, but could never fathom splurging on.
You just think they are
Your perception may be skewed. You see fancy cars in the driveway, and the trim lawns you can almost feel between your toes.
You watch work crews going in and out of the awesome remodeling projects happening inside. Yet, none of that means your neighbors are wealthier than you are.
Just because you see them as more affluent, doesn’t mean they are.
You are only able to see above the surface of their spending, meaning you have no idea what’s happening down below.
They're using excess funds for the fun stuff
While you choose to consistently save money for your kids’ education, and retirement later in life, they are spending what they believe are excess funds on their cars and homes.
They might be making the shallow choice to spend their money on what people can see, while you are spending your money on the life you want to live, both today and tomorrow.
You choose to pay for peace of mind.
It’s how your neighbors allocate their income that makes them seem richer than they are.
Their jobs come with nice perks
While your neighbors’ salaries might be slightly more than yours, it isn’t enough to justify the massive leap in spending.
However, fringe benefits can greatly widen the gap.
Perks such as cars, phones, laptops, and more can give the recipient an amazing leg up when it comes to freeing money for other pleasures.
See the rest of the story at Business Insider
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