How do you say no to peer pressure spending? What is peer pressure spending exactly? It can come in many forms. Here are a few and how to avoid them.
Keeping up with the Joneses
I’m sure that you’ve heard of this common idiom. Keeping up with the Joneses was popularized by a comic of the same name in the early 1900’s. The comic depicted a family who struggled to keep up with their unseen neighbors. The phrase lives on today to depict anyone who is trying to materialistically keep up with neighbors and family.
In western countries especially, success is defined by the accumulation of goods and possessions. Often at the expense of staying out of debt, long term planning, and investing for the future. So, how do you avoid this trap?
There are websites dedicated to this very subject. The main takeaways are to stop assuming that someone with a lot of material possessions is doing well. There is also a lot of emphasis of sticking to your own plans and doing what is right by your family. This involves living by a written budget and focusing on long-term goals instead of short-term satisfaction.
Everyday Peer Pressure
Keeping up with the Joneses might make you move into a larger home or buy a new car, but what about some of the smaller peer pressure spending that you might encounter?
This could take the form of literally anything. From going out to dinner with friends when your budget says no to going to a wedding that you can’t afford, financial peer pressure is constantly all around us. Here are a few tips to avoid it.
Live on a budget
A budget is often associated with no fun, but the opposite is often true. Unless you are trying to pay off a mountain of debt, then a budget can be your friend. Once you give every dollar a name there will be plenty for fun and entertainment. You will know exactly how much you can allocate to socializing with friends.
Be on the same page
Who you associate with can make all the difference. Seek out friendships that are aligned with your financial goals. If you are saving and investing 20% of your income, and all your friends have no savings and thousands of dollars in credit card debt, then it won’t be long before some problems and friction arise.
You are in control
Remember that ultimately you are in control of your finances. Your friends might try to talk you into going on a trip, but you will be the one who must pay for it. Set boundaries and clearly communicate them to your peers.
Wrapping Up
Financial peer pressure is a very real thing and can cause you to take on debt and throw your finances off the rails. Whether major purchases like a car or minor ones like a night out for drinks you must have your finances in order. Remember that you are ultimately in control of your budget and your finances. Don’t allow outside influences to derail you. Be sure to try to associate with people who are aligned with your goals and values and stick to the budget that you have created for your life.
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Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
