When we talk about status, we don't mean privilege or wealth (although status is often related to those things and often displayed with such things as a nice watch). Rather, status is the manner in which your conduct tells other people who you are. This isn't an issue of economics or breeding, it's an identity issue.
Although status is social, it's not simple popularity either. We as human beings literally require, on a basic evolutionary level, the knowledge that they're safe, accepted and among allies. Being held in high esteem by everyone around us isn't just a nice thing to feel; it's an affirmation that we exist and that all is well. By this same mechanism, status tells us, and everyone else, our place in the world. The way we project our value (or, fail to do so) is entirely self-determined.
Status matters because it’s the sum of how the world perceives you
An onlooker determines your status based on a collection of cues (which are sometimes imperceptible); what he perceives becomes who you are, in that room, in that moment. For instance, direct, unencumbered speech tells people that you've considered what you're saying and that it has weight; um- and uh-filled uncertainty does the opposite. Because status is essentially territorial, the way you carry yourself functions rather like animal dominance does. Stillness and deliberate movements indicate that you're in charge of your personal space and that you're comfortable in it. Fidgeting and showing physical awkwardness indicates that you're not. These examples may seem insubstantial, but that's part of why status can be so elusive. Most people don't understand what bodily cues they read before they decide how to treat you. They just react instinctively to those cues, without even realising they've done so.
Status matters because it’s not optional
Perceptions of status exist and affect you regardless of whether or not you're paying attention to them. They follow established rules too, which is why you can't just play by your own and hope everything works out. In the same way that style follows social conventions and doesn't give you license to look ridiculous, status doesn't leave much room for interpretation. You might think it complements your mysterious personality to avoid eye contact and act aloof, but the only thing people will gather from that is that you're arrogant and don't like anybody. Acting like status doesn't apply to you at all is even worse, because you're willfully ignoring the basic elements of social interaction. If you believe that your crowd doesn't operate that way, or that status only pertains to other people, trust us, you're wrong.
You'll never regret an improved status
In a phrase, there is absolutely no downside to working on improving your status. It's not time-consuming and the only effort it takes is the willingness to understand how the world views you and to adjust your life accordingly (which is something you should probably be doing anyway). It's not always pleasant to admit that some aspects of your behaviour deserve a change, but that's how personal improvement works. It takes an initial investment, perhaps learning how to assert yourself during introductions or to assume a more forceful posture, before you notice that people suddenly treat you with more respect and pay attention when you speak. These things won't revolutionise your life overnight, but they will, almost immediately, open your eyes to the ways you present yourself to people.
Status matters because it translates directly to opportunity
Even if you're not drawn to personal improvement for its own sake, consider that status is more than just how people feel about you, it informs how they decide to treat you. People who don't know you are always going to act based on the only information they have, and most of these situations that are based on social interaction (dating, your career, your personal relationships) will suffer if you're subconsciously saying: "Don't mind me, I don't matter too much" from the outset. You don't have to dominate everyone around you like you're part of some wolf pack, and indeed that would probably hurt more than help, but you do need to display that you know your worth. Otherwise, people are going to assume -- without even realising why -- that you have none.
