A close friend and I were exchanging notes on our respective financial situations when we realized that almost everyone in our immediate circle of friends has a similar financial mindset. We listed some of the common financial principles found amongst this group and these include (in no particular order):
- Cash first; no credit — as far as possible.
- Acceptance of our financial reality.
- No symbols/pretensions of “social status.”
- Save for a rainy day.
- Loans only as a last resort.
- Make financial mistakes; learn from them.
- Family and friendship first; money next.
I could go on with this list, but the more important takeaway is the undeniable fact that “the company you keep affects your financial situation and thinking to a great extent.”
What has your experience been?
Tip Tuesdays is my initiative to share practical personal finance tips â€” every Tuesday. I’d be delighted if you could share a tip or two from your own experiences. Drop a comment to submit your tip. And, as always, do spread the word if you find this useful.