Comparing your situation to someone elses can give an idea of what yours should look like, sure.
But as writer Carl Richards reminds us, this can backfire, too.
Richards uses an example of his workout routine.
Your finances can work the same way.
But my friends have different goals and priorities.
It doesnt make much sense to use their habits as my measuring stick.
We cant seem to help ourselves, even though
our neighbors business isnt our business.
For instance, tracking your monthly expenses is a great way to create accountability.
Another example of this concept in action: deciding how much to save for retirement.
But what does my situation have to do with theirs?
It makes more sense to base my goals on my own income, age, and future retirement plans.
Sure, it can help to look to others for a ballpark idea of what we should be doing.
Likefinancial rules of thumb, this can give you an idea of what your spending should look like.
But the point is, personal finance advice is, well,personal.
Stay Focused on Your Own Spending, Not the Other Persons| The New York Times
Photo byRocky Lubbers.
