How your social circle impacts your budget

Mirroring people around us come with good and bad side effects especially on our personal finances.

So if one is trying to manage your budget, cut costs, earn more, and generally become more financially prudent, you should take a long, hard look at the people around you.

The impact of ones social circle and friend also impact on financial wellbeing, either enhancing economic growth or financial ruin.

Does your social circle consist of good influences and role models? Or are your friends and family encouraging unhealthy financial habits?

Read Also: Bad money habits that keep you broke

Like it or not, our social circle, colleagues, neighbors, friends, family plays a vital role in shaping our attitudes and behaviors towards money.

Paul Plant, writing in the balance noted that “If you’re concerned that the people in your life are not supporting your decision to live a more budget-conscious lifestyle, there are few steps to be taken towards reshaping and strengthening your personal finance standing” as enumerated below.

Pick your friends and those you hang out with caution

There is a popular saying that says ‘’tell me your friend and I will tell you who you are”. In most cases, you are judged by the type friends or company you keep. If your friend are financially reckless, there is the possibility that you are likely to imbibe such attributes.

You tend to imitate those around you. I’m not saying you should completely give up spending time with your friends who are more carefree with their money; after all, friendship is priceless.

However, for the time being, maybe you should focus on spending your Friday nights with the portion of your friends that tend to be more cost conscious.

If all your friends are getting the VIP bottle service at a night club, you may be tempted to do so as well. If you hang out with that group of friends that would rather get a frozen pizza and watch Netflix, then you’ll most likely do the same.

Don’t let you friends be in the lead, be the one to suggest cheaper activities

When your friend are always in control, deciding where to go and activities to engage in most of the time, there is the possibility that you would be tied to their choice of where to revel and spending pattern.

How can you spend time with those friends who like to spend? Be the person who suggests activities.

Your friends might fall back on their standard habits of dining out at restaurants or hitting up bars if no one suggests an alternative.

Taking it upon yourself to mention a different activity means you can pick something that’s both fun and wallet-friendly.

Going on a night hike, playing board games, playing soccer at the park, watching movies at home, or having a jam session in the living room are all great options.

As an added bonus, you may become more popular with your friends because they’ll no longer have to come up with fun ideas or activities.

You’ll naturally become the central organizer within your group of friends. Who knew pinching pennies could lead to stronger friendships?

If married, get your spouse on board

Nothing can wreck your budget and income faster than a partner or spouse who either doesn’t share your vision, or doesn’t enjoy following through with the execution.

By motivating your spouse, you’ll also motivate yourself. Sometimes the best way to stick to a plan is by enlisting the help of an accountability buddy. There’s no one better than your spouse or partner to fill that role.

What should you do if your spouse isn’t interested? Ask him or her to create a vision board to discover the underlying “why,” the motive, behind this new-found frugality.

If they don’t understand your desire to budget, they might after recognizing that you’re skipping a restaurant tonight so that you can make a down payment on a house, or retire 5 years earlier than planned, or get rid of your car payments once and for all.

You can explain that budgeting isn’t about depriving yourself from a few indulgences. It’s about inching closer to your big goals. Skipping dessert doesn’t feel like such a sacrifice when you realize the money you would have spent on chocolate cake is now extra money in your Aruba travel fund.