How to Improve Your Financial Habits by Choosing Your Circle Wisely
Have you heard the saying, "You are the average of the five people you spend the most time with"? This idea was popularized by motivational speaker Jim Rohn, and it suggests that our habits, attitudes, and overall success in life are influenced significantly by the people we surround ourselves with. While this concept applies to many areas of life — like health, mindset, and career — it’s particularly relevant when it comes to money.
Why Your Circle Matters for Your Financial Health
We often underestimate the impact that our social circle has on our financial behavior. But the people you regularly interact with influence your spending habits, saving strategies, investment decisions, and even your overall mindset toward money. If your friends are big spenders who frequently talk about shopping sprees, lavish vacations, and living paycheck to paycheck, you may find yourself adopting similar habits, often without even realizing it.
On the other hand, if you surround yourself with people who are financially responsible — who budget, save, invest, and talk openly about financial goals — you are far more likely to develop those habits yourself.
Let’s explore how surrounding yourself with financially savvy individuals can improve your financial health.
1. Financial Habits Are Contagious
Humans are inherently social creatures who tend to mirror the behaviors of those around us, whether consciously or unconsciously. If the folks in your circle prioritizes budgeting, saving, or investing, you’ll naturally start picking up those behaviors. Discussions about financial goals, strategies, and successes will encourage you to adopt similar habits.
For example, if you frequently hang out with someone who tracks their spending carefully, saves diligently for the future, and talks about these activities regularly, you might be inspired to start budgeting your own expenses. Similarly, if a friend frequently discusses the benefits of investing in the stock market, you may become more curious about exploring investments for yourself.
2. You’ll Gain Access to Valuable Knowledge and Resources
Being around financially literate individuals opens the door to new information, strategies, and perspectives that you might not encounter otherwise. They may introduce you to tools like budgeting apps, books on personal finance, or podcasts that can deepen your understanding of money management.
People who are good with money often share insights about side hustles, investment opportunities, and other avenues to grow wealth. This access to information and advice can be invaluable, especially if you’re just starting your financial journey.
3. Accountability Boosts Financial Discipline
It’s one thing to set financial goals; it’s another to stay committed to them. Having a network of friends who prioritize financial health can keep you accountable. For instance, if you tell a financially responsible friend about your goal to pay off debt, they might check in on your progress, offer encouragement, and even share tips on how to stay on track. Those friends were invaluable to us when we were aggressively tackling our own debt years ago.
Accountability doesn’t mean policing each other’s finances. Ew. Rather, it’s about having a support system that encourages you to stay disciplined and make sound financial decisions. It’s easier to stick to a budget or a savings plan when the people around you understand and support your goals.
4. Positive Peer Pressure Can Drive Change
Peer pressure often has a negative connotation, but it can also be a powerful force for good. If your social circle prioritizes making smart financial choices, you may feel encouraged to follow suit.
Imagine being in a friend group where going out for a simple, budget-friendly dinner is more common than splurging at expensive restaurants, or where the conversation centers around investment opportunities instead of the latest gadgets. This kind of environment creates positive peer pressure, nudging you towards better financial habits.
5. Expanding Your Network to Find Financially Savvy People
If your current circle doesn’t align with your financial goals, it’s never too late to seek out new influences. Here are a few ways to expand your network:
Join Financial Groups
Look for local or online communities centered around personal finance, investing, or money management.
Attend Workshops or Seminars
Financial literacy workshops can connect you with like-minded individuals who are also seeking to improve their money habits.
Engage with Content Creators
Follow bloggers (hi hey hi 👋), podcasters, or knowledgeable social media creators who share practical financial education and join their online communities.
Find a Financial Mentor
Seek out a mentor who has achieved financial success and is willing to share their knowledge. This could be a parent, colleague, or family friend. This doesn’t have to be an expert — someone who’s just a step or two ahead of you and willing to share what they’ve learned along the way can be a mentor. There is no finish line with learning, and we can all stand to learn from one another.
Choose Your Circle Wisely
Your financial health is influenced not just by your own decisions, but by the attitudes and habits of those around you. By intentionally surrounding yourself with people who are good with money, you increase your chances of becoming financially savvy yourself. It’s not about cutting ties with friends who don’t share your financial values; rather, it’s about adding positive influences into your life that align with your financial goals.
Remember, improving your financial habits isn’t just about what you know—it’s also about who you know. Choose your circle wisely, and watch as your financial outlook starts to change for the better. 💚