Birds of a feather flock together. When it comes to friendship and money, this phrase still rings true – at least to a certain extent. That’s because we tend to spend time with people who share our own values and lifestyles, and that includes financial lifestyles.
You don’t see Dave Ramsey (the guy who thinks you should buy a house with cash) hanging out with Nicolas Cage (who spent over $200k on a dinosaur skull). The people you hang out with have a major impact on your lifestyle and the choices you make.
Here’s how having the right friends may actually save you money.
You Have Similar Goals
The right friends will be on the same path as you, looking to achieve similar goals. If your goal is to be conservative with your spending, then having friends who also have conservative spending habits will save you money.
On the other hand, if you have friends who have no problem dropping a few hundred dollars on a night out, you won’t save a cent. Their lavish spending will only encourage you to spend more and bring you further away from your goals.
Beyond spending habits, the right friends may help you reach your career goals. If you have ambitious friends, eager to climb the corporate ladder, there’s a good chance that you have the same goals.
As your friends succeed in getting promotions and progressing in their careers, it will keep you motivated to do the same. As you earn more, you save more.
You Have Similar Values
The right friends will have similar values to yours. Maybe you value spending money on high-quality food cooked at home and enjoyed with friends instead of going out to an expensive restaurant.
When you share similar values, you tend to have similar spending and saving habits. The right friends won’t give you a hard time if you decide not to spend a fortune at a restaurant or a night out. They will understand your motives because they have similar ones.
You Have Similar Lifestyles
Some people are spenders. Some people are savers. But there are different degrees of spending:
People who have $100, but spend $101. They like to spend, but they don’t go overboard.
People who earn more than they will ever need, so money is no object.
The YOLO crowd who doesn’t think about tomorrow – only spending every dime they have to enjoy today.
The simple fact is that your friends will 100% affect your spending. It’s important to align yourself with people who have similar lifestyles. Otherwise, you may spend every last dime you have trying to keep up with the Joneses.
If you have the right friends, you save money. Why? Because you’re all on the same page when it comes to spending and saving. When you find your tribe, you don’t feel the need to entertain other people and waste money along the way. You’re happy to share your time with people who share your lifestyle, values, and goals.