You probably already know that your friends and family exert some influence over your habits. For instance, if you hang around with people who tend to dress casually, you're
likely to do the same. According to science, your social circle can even impact the way that you handle your financial life. Nobody is suggesting that you should ever pick your friends by the size of their bank accounts. On the other hand, scientific studies do suggest that spending more time with people who do a good job of managing the money they have can help you pick up good financial habits too.
How Do Your Friends Influence Your Finances?
Most of you probably don't enjoy unlimited income. Setting aside money for emergencies and future goals takes discipline and patience. People who have money to send kids to school, retire comfortably, and handle unexpected expenses usually don't get that way by accident. They made deliberate financial plans, abided by their budgets, and exerted self-control over their spending habits.
It's easy to understand the steps that frugal people take to manage their finances; however, it can be more difficult to transform yourself into one of these people. That's why you may need some help from financially adept friends. Lots of folks find it difficult to resist the temptation to frequently eat out, buy new clothes, and even purchase new cars, but some folks find that good monetary habits come more naturally.
Get Help With Financial Discipline From Your Friends.
If you have trouble with monetary self-control, you might consider a 2013 study from two Duke University researchers that was published in Psychological Science. The study found that you can develop better financial discipline if you spend more time with people who don't have trouble resisting these temptations until they know they can afford them.
Of course, financially disciplined people may have a lot to teach you about budgeting and investing; however, more than that, they tend to lead by example. Even people who have lacked financial self-control in the past, tend to do better when they hang around other people with better monetary habits. They tend to cultivate those traits that they value in their acquaintances. In fact, people who believed they lacked discipline even tended to value bosses who they regarded as more disciplined. They could use these more controlled mentors to help them develop better skills and habits to make up for qualities that they believed they lacked. Even undisciplined workers valued their mentor's discipline and believed that it helped make them more productive and efficient.
Who Can Help You Develop Good Financial Habits? When money seems tight, an acquaintance with good financial sense can be a friend indeed! Of course, once you have your financial house in order, you might even notice that you are making new friends too.
Source: psychologicalscience.org
