Did you know that who you choose to hang around can increase or decrease your chances of building wealth? In, “Are Your Friends and Relationships Killing Your Finances?” I wrote about the negative types of friends and family that will drain you of your money. Now let’s talk about how having financially positive friends can affect your finances.
Good Credit Is The Key
This friend may not be a credit expert, but they are obsessed with their credit score. They know what will make it move up or down, how to fix credit, and what to do to maintain it. Having a credit focused friend will often inspire us to stay on top of our own credit, even if we’re not obsessed with it like them. Being credit conscious is never a bad thing.
Invest, Invest, Invest
The investor friend swears that the stock market is the best place to put your money when you don’t need it. They are aware of the latest changes in the market and rarely panic when the market dips or there are rumors of a recession. Their enthusiasm about the market often rubs off and makes those around them want to invest, even if it’s only a little.
Pay Yourself First
The “pay yourself first” person is all about hording money for a rainy day. They probably save a set percentage of their income like clockwork, and definitely have a 401k (or equivalent). They can show you how to get your finances under control and help you put yourself in a better financial position later on in life.
Real Estate Over Everything
This friend is similar to the investor, except they put all of their faith in real estate. They can educate you on why owning real estate is mandatory for building wealth, why monthly cash flow is the best thing since sliced bread, and are all about equity.
Having a mix of these friends will make you a very well rounded individual when it comes to your finances. Consider the friends you have around you now and ask yourself:
- What kind of conversations do we have?
- How many of us are on the path to being wealthy?
- How many of us are living paycheck to paycheck?
If you don’t like the answers to these questions, it may be time to change your circle.