Sometimes it’s difficult to pinpoint what influences us. We might be persuaded to think or act a certain way due to what we view on television, what we see on social media, or how we were raised (our upbringing). But one of the most powerful influences on everyday life is quite simple: the people we interact with on a regular basis.

When it comes to politics, for example, we are very likely to influence and be influenced by our social circles. The same is true in all aspects of life—from volunteering decisions to eating habits to fashion choices. It stands to reason, then, that your financial success can be influenced (either positively or negatively) by the people around you.

An article by J.P. Morgan says, “Social norms and conformity have a profound influence on our financial decision-making, and most are deeply rooted in psychology.” The article goes on to explain that a desire to belong, a fear of deviation, and herding behavior are among the mentalities that can guide us to behave like those around us. In my experience, I have found this to be true. If you’re on vacation with a couple who enjoy expensive dinners and lavish activities, you will likely feel pressured to indulge in the same. Or, on the other hand, if you are friends with someone who prioritizes saving and smart investments, you may find yourself adopting a similar mindset.

Here are a few pieces of advice when it comes to surrounding yourself with people who are positive financial influences:

Pay Attention

Be mindful of the financial habits and attitudes of those closest to you, as they can significantly impact your own financial decisions. What are the spending habits of your friends, co-workers, and family members like? Is their lifestyle something that is attainable and desirable for you? Are they, perhaps, okay with a higher level of debt than you are? By paying attention to the behaviors and mindsets of those around you, you can better understand how they might influence your financial choices.

Seek Positive Influences

By surrounding yourself with individuals who prioritize financial literacy and are proactive in managing their money, you can create a supportive environment for achieving financial success. Look for friends and acquaintances who demonstrate responsible spending habits, prioritize saving, and make smart investments. By aligning yourself with positive financial influences, you can be encouraged to make similar choices and build a strong financial foundation. Remember, your social circle can play a crucial role in shaping your financial mindset and behaviors, so choose those who will inspire and motivate you towards financial stability and success.

Discuss Finances

Although it can be taboo or crass in some circles to discuss financial matters, you should be able to discuss such things with close friends or family members. Engage in open conversations about money matters, and seek advice from those you trust. Through honest dialogues, you can gain new perspectives on financial management and learn from each other’s experiences. Remember, discussing finances should not be a source of tension but rather an opportunity for growth and mutual support. By fostering an environment where financial topics are openly addressed, you can strengthen your financial knowledge and make informed decisions for a prosperous future.

Say No

At times, it is best to protect yourself from temptations to overspend or overindulge. If someone invites you to a weekend getaway, an expensive spa day, or to splurge on designer items that are beyond your budget, it’s okay to politely decline. It is, of course, fine to spend money at times, but if you’re pretty sure the situation will push you beyond your spending comfort zone, it’s best to simply say “No thank you” to the invitation. Remember that your financial well-being is a priority, and it’s essential to make decisions that align with your long-term goals.

Surround yourself with people who respect your financial boundaries and support your aspirations. By staying true to your values and being selective about the influences you allow in your life, you can pave the way for lasting financial success.

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