How Your Closest Friends Can Shape Your Finances

Finances are not something we talk about even with our friends. It is too personal to bring up during a casual conversation. But just because we don’t talk about it doesn’t mean we are not influenced by our friends’ “financial decisions” regularly.

What influences us about our friends’ behavior is not the real truth because we cannot dare to ask questions. We make assumptions, and most of the time, we think they have it all together better than we do. And sometimes they do. But the one thing I need you to keep in mind is that what they have decided to be their best might not be yours.

Do I need new friends?

So how do you navigate these friendships without letting them define your financial plan? The answer is simple: in my daughter’s voice: “you do you booboo”! It doesn’t mean that you don’t listen to anyone or take anybody’s advice. It means that you determine what’s best for you, what works for your particular situation, and more importantly, what you can sustain.

In friendship or any other relationship, you need two types of friends: ones that are similar to you and ones that are different. The goal is to have a sober view of the reality of the world. You want someone to affirm and confirm your ideas but also someone who can challenge your thinking and help you grow.

If all your friends agree with you, you need new friends.

If you are the smartest in your group of friends, you need new friends.

If you are the richest in your group, you need new friends.

I am not saying that you should have 20 friends to cover every area of your life but maybe 5. Unlike your family, you get to choose your friends, so choose them wisely. Don’t feel bad cutting people off if the friendship is not mutually beneficial. Sometimes, friends are for a season in your life, and when the situation changes, the friendship dissolves organically.

Choosing Friends

When it comes to your finances, it is important to understand that if you are around people who make poor financial decisions, you will end up making bad decisions yourself. It is easier to pick up a bad habit than a good one. They might not even be bad habits, they might be habits you can’t afford or don’t enjoy. Don’t feel pressured to conform to the masses.

What Do Your Friends Do?

Do your friends have jobs?

Are they entrepreneurs?

Do they own homes?

Do they invest?

Iron sharpens iron. You want to be in the company of people who help you to grow and be better. You build financial success through small steps you take continually. Stagnation is the enemy as you progress on your journey.

You want to learn from someone who has been in your shoes and successfully overcame what you are trying to overcome. You might also want to “hang around” people on the same journey to learn from their experiences. I am part of Chris Hogan’s FB group Everyday Millionaire, and I’m inspired by people’s stories on how they are working toward millionaire status (or how they got there).

Community, Community, Community

These friendships (in person or online) can help or even push you to work on YOUR goals. You will need encouragement along the way, and your circle of friends has a huge impact (whether you know it or not) on how hard or easy the journey would be. Sometimes we are surrounded by naysayers that we feel like we can’t make it. You cannot afford to give up on your financial future. I want to encourage you to find a community (FB has a lot of groups you can join for free), educate yourself through books and online recourses.

“The source of your limitations are your attachments.” Pastor Travis Greene