My friend Kevin’s spending habits are really starting to get under my skin. He is always wasting his money on expensive dinners, designer clothes and luxury items, all because he wants to impress the ladies. What’s worse is that somehow, his reckless spending has affected my finances as well!
For months, my financial habits have emulated his, to the point where I’ve bought so many unnecessary items just because Kevin claimed it would impress women. I even splurged on an overpriced aftershave because he told me it would make heads turn. I tried to keep my finances in check, but I realised that if I keep following Kevin’s footsteps, I will never achieve financial security.
Puzzled as to why I kept letting his spending influence mine, I decided to do some research. That’s when I came across a theory called the ‘Peer Ripple Effect’ in a book titled What’s Keeping You Broke? An Illustrated Guide to Financial Freedom by The Simple Sum. The book explains how our friend’s actions can impact our financial choices. It suggests that, as humans, it is in our nature to seek acceptance, which sometimes leads us to mimic our friends’ spending habits to seek validation from them.
Since then, I made the decision to improve myself in the hopes of inspiring Kevin to do the same. I started saying “no” to him whenever he tried to borrow money or convince me to buy lavish goods. I also came clean on how I felt about his spending patterns, which he acknowledged.
We are still friends, and I’m happy to say that I have noticed some improvement in his finances. Although he still spends more than me, he has been cutting back on a lot of unnecessary expenses, and I am really proud of him for that.
We made a book! What's Keeping You Broke? An Illustrated Guide to Financial Freedom shares tips on how to better manage your finances and steer your relationship with money in the right direction. Click to find out more:
