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The people you surround yourself with influence you in more ways than you might realize. Having friends who are overweight increases the chances that you become overweight, says the National Library of Medicine. Your friends’ smoking habits impact your smoking habits, says the New England Journal of Medicine. So it’s not a stretch to think that the way your friends’ approach to money would impact your finances.
You’re constantly absorbing ideas from the people around you – whether consciously or subconsciously. And money and friendship are closely tied. Every time you decide where to have dinner or vacation together, you’re making a financial choice together. Often, the person with the strongest opinions influences the group. So, it’s important to make sure the people in your life have financial goals that are in line with yours. Your friends could be one of your greatest assets – or obstacles – when it comes to reaching money milestones. Here are ways your friends can influence your finances.
YOLO Friends = YOOM (You’re Out Of Money)
Yolo friends are infectious. They’re always telling you to book the flight, rent the yacht, get the concert tickets and pay for the $600 sushi dinner. Why wouldn’t you want someone in your corner telling you that it’s okay to indulge in every financial whim? The problem is, while you do only live once, you might live for a long time, and you’re going to have to pay for all of those years.
If your finances are tight, you might just have enough set aside every month for fun or investing in a retirement fund. And YOLO friends will always encourage you to choose that champagne and caviar brunch. You want to, because you want to hang with those friends. But they won’t be there when you’re 70 and can’t afford to retire.
