Love, friends, and money. What’s the connection? This month (since it’s Valentine’s Day, after all), we are talking about relationships, connection, and money.
First up, friendships and social connection. How do they impact your money?
How Friendship Affects Your Money
Yes, your friendships have a direct impact on your finances. Here are six ways your friendships affect your money.
1. Friends Influence Your Spending Choices
Keeping up with the Jones’ is a real phenomenon. If your friends are all spending a lot of money, buying larger houses, fancier cars, or enrolling kids in private school, it will cause you to think you should do the same.
If your friends’ spending is making you uncomfortable with your own spending choices, it may be time to get some new friends.
2. Friends Help You Get Better Jobs
When it comes to getting a new and better job, your network matters. If you have a lot of friends and friends of friends in your network, you are going to be better able to advance your career if and when you need to.
3. Friends Provide Support During the Worst of Times
Social connection can provide both physical and emotional support when things go poorly.
What will happen when one of your parents dies? Will you have friends who will help with your kids (if needed) or drop off a meal? What would happen if your house burned down? Would you have friends to run errands for you and take you in for a few nights while your insurance works itself out?
Studies show that: “Connectedness makes a larger difference to satisfaction in times of financial stress.”
What does that mean? You are going to feel better during tough times when you have strong social connections.
4. Friends Lift You Up During the Best of Times
When things are going well, your friends are there with you to celebrate. This has less of a financial impact. However, the emotional impact it provides gives you an extra incentive and reward to do better.
And let’s be honest, isn’t celebrating the joys in life with people we care about an important part of life?
5. Friends Can Help You Grow Personally, Which Will Help with Your Business
Being socially connected provides a number of benefits that can help you advance in your business and career. Studies show that friendships/connections can improve self-esteem, improve self-worth, and provide a sense of purpose and meaning.
All of these will lead you to ultimately do better in work.
6. Friends Improve Your Health
Poor health is one of the biggest drains on the wallet. Fortunately, friendships can help you be healthier and live longer. Studies show that people with fewer friends are more than twice as likely to die sooner than those with more friends.
The Bottom Line
To earn more money, enjoy the money you already have, and get the most out of this one life you’ve got, you need social connection. Spend time focusing on your friendships this month.