Although the current economy is showing signs of improvement, we all know that conditions are tough for most people. So why are so many people taking extravagant vacations and living social lives that feel more like a boom than a recession?
One financial expert has identified four seemingly simple reasons why some people can make extra purchases in this economy.
Despite massive price increases, stagnant wages, a tight job market, and dire housing conditions, most Americans still spend their money as if everything was extravagant.
In fact, the Wall Street Journal recently I did a research dive
So what does that give?
1. Not everyone is broke. In reality, some people have far more money than they let on.
That half may seem a little too simple, but Vee says it’s easy to forget this, especially when scrolling through your social media feed. “While it is true that we are all dealing with the effects of rising fuel and food prices, [costs]”Inflation affects people in different ways,” she said.
Top 10% of earnersnot those most in need of financial support.
2. Some people don’t mind taking on debt.
The second factor involved is also often forgotten. Many of the people you see online and in social circles who appear to be living wealthy lives are probably living entirely on credit cards.
“You have to keep in mind that some people don’t care about having credit card debt at all,” she says. She then explained that she recently fell into a TikTok rabbit hole of people discussing how much debt they have.
What Vee witnessed is consistent with what the Wall Street Journal found in its report. Many of us have become so nihilistic about our current situation that we even abandon trying to manage our money or plan for the future.
“They were like, you only live once, I’m going to enjoy it,” she said of these people. “And for them, as long as they paid the minimum amount, they didn’t care about the balance.” This is clearly not a smart way to manage money, but it’s certainly relatable given the times.
3. Many people supplement their income with side hustles, gig economy work, or multiple jobs.
I mean, not everyone works a single 9-to-5 job and lives a wealthy life. Today, many people hold multiple jobs. One of the recent studies We found that a whopping 46% of Gen Z and 37% of Millennials do so.
”[This] kind of goes back to the first point about ‘not everyone’s broke,'” Vee said. “I’ve heard of people who use their nine-to-five job for solely their living expenses, and then they’ll get a side hustle And they will spend all that money on fun. ”
4. Delayed gratification.
The reason some people can afford to pay extra is probably the simplest reason. Some people are old-fashioned thrifters, and you see them enjoying the results of saving that money.
Vee explained that these are “people who … don’t have a lot of disposable income to do what they want whenever they want. So instead they’re patient,” coming up with a plan, saving up some money, and then enjoying discretionary Sometimes it takes years.
Either way, inequality is inherent in our economy, which means it affects us all differently in good times and bad.
Not everything people do on social media is necessarily true. In fact, it almost never happens. That’s one reason Vee, like many other financial experts, leans into the “eliminate life impact” trend.
Of course, this recognition does not necessarily solve the economic problem. But comparing ourselves to others is one of the quickest ways to feel worse about our own situations and to end up making decisions that only exacerbate our problems.
The high life that people on Instagram and TikTok live is only half the story. The more we can all focus on our own needs and resources and stop comparing ourselves to others, the better — and more financially stable — we’ll all be.
John Sundholm is a news and entertainment writer covering topics related to pop culture, social justice, and the good of humanity.