There are many factors affecting your financial success. One of them is your personal relationships. While this is just one of the many factors that directly affect how you manage your money, it is one of the most neglected. Most people either think that it is trivial or they completely miss the connection.
But allow us to enlighten you.
Most people think that their focus should be on their income. It is true that this is a big influence on whether you will be financially successful or not. But money management is also quite important. It does not matter how much you earn. If you are irresponsible with it, you will never find financial success. However, if you know how to manage your money well, you can earn the minimum and still end up successful in the end.
So where do personal relationships come into play?
Well, money management is greatly influenced by the people you interact with. It can be your parents, siblings, friends, co-workers, etc. The people who surround you influence how you act and in effect, they have the power to influence how you manage your money.
If you grew up with financially responsible parents you can learn based on what they showed you as you were growing up. When you have friends who are financially savvy individuals, that will rub off on you. If you marry a saver or spender, you will have to deal with that influence for the rest of your life.
Not only that, the people and relationships around you has a way of affecting the way you see life. If they are reckless with their spending, it is easy for you to adopt that way of thinking.
Specific ways financial success are affected by relationships
There are different ways that your personal relationships can shape the way towards financial success.
Personal relationships help shape critical money habits
The money habits you have at the moment has been shaped over time. There is a big possibility that a big chunk of that came from your parents and immediate family members. They are the ones you spend a lot of time with while growing up. As a child, it was much easier to indirectly influence the way you think simply by looking at what older people do.
This is one perfect example of how personal relationships can influence your financial success in the future. If you grew up in a family that mindlessly spent and paid everything for with credit, you could be doing the same thing now. If your parents instilled in you the value of saving and making sure you know the responsibility that credit payment entails, you could be doing a lot better today.
Personal relationships can influence buying behavior
Psychology Today shares that people tend to look at friends and people around them for assurance that they are making right decisions. The people you are with has a way of influencing your money decisions and, in turn, your financial success. You might be trying to play catch-up with your group of friends who seems to always have the best gadgets in town.
You could also be pressured at work seeing most of your colleagues brandishing new smartphones as they walk by. That neighbor across the street always has a brand new car up in their garage. Family members might always be on holidays in exotic locations almost every month – that can also influence you to do the same even if you cannot afford it.
Your relationships help shape your long-term goals in life
Whoever you spend the rest of your life with will obviously have an influence on your long-term goals. After all, you will be sharing that future with them. It is only right that you manage your long-term goals together. But the problem is, what if they do not want to manage it properly? Will you be left to do the task on your own? Will you be butting heads while deciding on how you can reach your goals?
It is important to remember that your ability to work as a team can influence your future financial success. Even if you decide that only one person should handle the finances, the both of you should be making the decisions – or at least, the major ones. This will keep disagreements and miscommunication problems from arising. So if you cannot work together, that can be a huge obstacle and it can compromise the opportunities that will come your way. Not only that, it can really put a strain on your relationship.
How to ensure your relationships can lead to financial success
Now that you understand how your personal relationships can influence your financial success, it is time for you to ensure that it will only affect you positively from now on.
Here are some tips that you can use.
Surround yourself with people that want the best for you
Start by choosing who you want to surround yourself with. According to a study, the people around you can influence how we think, act, and feel everyday. Of course, this is easier said than done. What if your current circle of friends is affecting your finances negatively. Should you drop them? What about your family? Colleagues?
Well, if your friends are making it hard for you to make smart financial decisions, you might want to lie low for a while. The same is true for your family. If you want to keep in touch with them, you need to make sure your focus and self-control are strong. In case you cannot make that happen, keep your distance.
It also does not hurt to make new friends – one that you know can help you get closer to financial success. If there is one person that you want to emulate, hang out with them as often as you can. Have them introduce you to their own circle of friends.
Do not get offended when people close to you call you out on wrong financial decisions
The people who can call you out on your mistakes are usually those who care for you the most. They are not afraid of ruining your relationship if it means you will be okay. This is why you have to cherish those who correct your financial moves whenever it is appropriate. You should actually appreciate it more. Not everyone is brave enough to correct someone for fear of a confrontation. Those who only tell you what you want to hear, those are the ones that do not really care about your welfare.
Listen to a great financial advice, especially from someone who is in a current financial position that you want to be in. You can really learn a lot from what they have been through. If you are going through some tough times, they can talk you through it. Although your journey will not exactly be the same, it still helps to know what you should be expecting in order to reach your financial goals.
As you can see, your financial success will come easier if you have the right personal relationships in your life. It is not just about having the support that you need. Sometimes, having everyone going in the right direction will force you to take steps forward yourself. It will not make the journey less challenging, but it will make it more worthwhile.