Your financial habits are one of the most important aspects of your life. They can dictate your ability to achieve your goals, your level of financial independence, and your overall well-being. However, what many people do not realise is that the people around them can have a significant impact on their financial habits. The people you choose to surround yourself with can influence the way you spend, save, invest, and view money.
Spending Habits:
One of the most obvious ways in which your social network can affect your financial habits is through spending. The people you spend time with can have a significant influence on your spending habits. For example, if your friends frequently dine out at expensive restaurants, you may feel pressure to do the same. This can lead to overspending and a strain on your finances. Similarly, if your social circle is focused on material possessions and expensive lifestyles, you may feel the need to keep up with this lifestyle, leading to debt and financial stress.
“You are the average of the five people you spend the most time with.” – Jim Rohn
On the other hand, if your social circle values saving and frugality, you may be more likely to adopt these habits as well. For example, if your friends prioritize spending time together in more affordable ways, such as having potluck dinners or movie nights at home, you may be less likely to feel pressure to overspend. Being surrounded by people who prioritize saving and frugality can help you adopt these habits and achieve your financial goals.
Attitudes Towards Money:
The attitudes of those around you towards money can also have a significant impact on your own financial outlook. If you are surrounded by people who are constantly talking about money and material possessions, you may develop a similar mindset. This can lead to a focus on materialism and a disregard for saving and investing. On the other hand, if your social circle values experiences over material possessions, you may be more likely to prioritise saving for travel or other experiences that bring you joy.
It is important to be mindful of the attitudes towards money that are prevalent in your social network. If you find that your social circle’s values are not aligned with your own financial goals, it may be time to consider expanding your social circle or finding ways to connect with people who share your values.
“Your network determines your net worth.” – Grant Cardone
Social Pressure:
Social pressure can also play a significant role in your financial habits. For example, if your friends are always going on expensive vacations or buying expensive clothing, you may feel the need to keep up. This can result in overspending and debt. On the other hand, if your social circle values experiences over material possessions, you may be less likely to feel the need to keep up with expensive lifestyles.
It is important to remember that social pressure can be both positive and negative. Being surrounded by people who prioritise saving and financial responsibility can provide positive social pressure to adopt these habits as well. Additionally, being part of a social network that values experiences over material possessions can provide a sense of freedom and relief from the pressure to constantly buy things.
Accountability:
Your social network can also provide a sense of accountability when it comes to your finances. For example, if you have friends who are saving for a down payment on a house, you may be more likely to do the same. This can be a positive influence on your financial habits, as you have a support system to help you stay on track.
Having a social network that is supportive of your financial goals can provide motivation and inspiration. For example, if you have a friend who has successfully paid off their debt or achieved financial independence, you may be inspired to do the same.
“Your social circle greatly impacts your financial habits. Choose wisely.” – Anonymous
Your social network can have a major impact on your financial habits, both positive and negative. It is important to be aware of this influence and to surround yourself with people who share your financial values and goals. By doing so, you can create a supportive network that helps you achieve financial success and stability.
Dhriti Chatterjee, our Fortune Academy student, was sharing about how her life changed when she started making conscious decisions about the people she was surrounded with. Since she got a lot of value and transformed her life through Fortune Academy, she wanted to ensure the same energy and vibe is maintained with the people around her. So she made conscious decisions such that all her family and friends also joined Fortune Academy. She encouraged people in her circle to join Fortune Academy, and now she is able to be in alignment not only during the Fortune Tuning sessions, but also throughout her day, since all the people around her are now in alignment and vibing in the same energy. By convincing people in her circle to join Fortune Academy, she is now happy and satisfied that people in her closest circle are able to live a life of fulfilment and happiness and transform their lives drastically. This has resulted in bringing about impactful changes in her financial habits as well.