“You are the average of the five people you spend the most time with.”
Jim Rohn’s quote is highly applicable to financial matters because your spending and your views on money can be influenced by those you spend a lot of time with.
Think of the 5 people you associate mostly with – they are most likely your family, friends, and work colleagues. All of these people could be having an influence on your views and actions towards your finances and you might not even be consciously aware of this influence.
Many people have grown up with negative views and soundtracks playing in their heads from their parents’ attitudes towards money when they were young. Children will remember quotes such as..
“Money doesn’t grow on trees”
“We can’t afford that”
“Money is the root of all evil”
Way to stifle someone’s ambitions! Please don’t let these negative quotes play over and over in your head – or that of your children!
Better things to say are
“Money is abundant in the World”
“How can we afford it?” (Said positively, in the search for a solution)
“By being rich you can help many people, being poor helps no-one”
Have a listen to how those around you talk about their finances and see if you can find a correlation between the way they speak and their financial situation. Successful people are always looking for solutions and opportunities to improve their situation. They can make their own luck.
“Luck is what happens when preparation meets opportunity.” – Seneca
Observe how those closest to you treat debt and savings. See if they mention carrying credit card debt over from one month to the next, or if they mention their financed car, or perhaps they talk about their business, property, or term deposit.
You’ll be able to gauge your workmates’ financial success by how desperate they are as pay day approaches.
Are those closest to you on the same financial path as you?
Are you the odd one out amongst your family, friends, and work colleagues?
If you are surrounded by people with consumer debt and a lifestyle of spending up large every weekend, then this is very likely to derail your own financial plans.
At the very least you need to be aware of this and take steps to protect yourself from their influence.
I’m not suggesting that you disown everyone in your life, but see if you can find some new friends who are heading in the same direction as you. There are groups for everything these days – particularly with the invention of social media.
If you are interested in property, join your local property investors’ association, if you are interested in business, then see if you can find some new friends who run their own businesses. For your personal development, it is important that you have friends you can aspire to be like, rather than you being the odd one out in your current circle.
It’s also helpful to read books by successful people e.g. Donald Trump, Duncan Bannatyne, and Richard Branson as they often tell the story of how they got to where they are now and their journeys can be quite inspirational.
I have a particular interest in successful people and I love talking to them about their success. You’ll find too, that people are happy to talk to you if you are genuinely interested.
Don’t be fooled by the flashy cars, gadgets, and clothing of your friends and work colleagues, hunt out someone who has made it to where you want to be and take them out for coffee.