Here’s why everyone in America seems to have more money than you. It may not be

If your friends, family, and coworkers always seem to be dining out, going to parties, taking exotic vacations — and maybe even paying $2,000 each for Taylor Swift tickets — while you clip coupons for groceries, you might feel like everyone you know has more money than you.

This could be especially painful if you’re feeling the pinch of inflation, right down to your grocery bill.

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But Americans have a lot of debt. In fact, U.S. household debt reached $17.69 trillion in the first quarter of this year, according to data from the Federal Reserve Bank of New York (FRBNY). Although inflation has been mostly declining over the past two years — after pandemic highs — the Consumer Price Index increased 3.3% during the 12 months ending May 2024.

As if the debt weren’t enough, almost half of Americans (48.6%) consider themselves “broke,” according to a MarketWatch Guides survey, with about two-thirds (66.2%) “living paycheck to paycheck.”

Considering the financial instability of everyday Americans, why does it appear like everyone is living the high life — except you?

Racking up credit card debt

Americans have an enormous amount of credit card debt. Outstanding balances on credit cards reached a grand total of $1.12 trillion in Q1 — up 13.1% from the same period last year — according to data from FRBNY.

This is a grim milestone, as 2023 was the first time outstanding credit card balances surpassed the $1 trillion mark.

Another Bankrate survey found that 49% of credit card holders were carrying a balance from month to month in 2023. In some cases, Americans may be relying more on their credit cards as their finances are stretched thin, thanks to the higher cost of everyday expenses and higher interest rates on credit and loans.

But with credit card interest rates around the 21% mark — and in some cases as high as 30% — using a credit card to foot bills or bridge monthly shortfalls can be a losing game. If you buy groceries with a credit card and only make the minimum monthly payments, it could take years to pay off that bill, since you’ll be paying back the interest rather than the principal.

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In other cases, people might be living the high life by charging everything to their credit cards (or even taking out loans), while ignoring the consequences. So, while it might look like they have a lot of disposable income, they’re racking up more and more debt, which eventually will catch up with them.

Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here’s how you can save yourself as much as $820 annually in minutes (it’s 100% free)

Making lifestyle sacrifices or trade-offs

Maybe one of your friends always seems to be traveling to yet another exotic locale. It’s possible they’re living beyond their means, but they could also be making sacrifices in other areas to prioritize travel. For example, maybe they’ve chosen not to buy a car and use public transit instead, so they can funnel more of their budget toward travel.

A LendingTree study of census…