Financial Peer Pressure – Big Problem in Some Social Circles

Financial Peer Pressure – Big Problem in Some Social Circles

We live in the age of financial peer pressure according to Mikey Rox. I agree with that. I have noticed my neighbors and other people who are competing. What are the things they want to compete? I will share to you later on. They compete on the material things because they want to impress other people. And that competition process is called “financial peer pressure”.

Today I am going to share to you why many people are broke. Why they keep on becoming poor and the reasons why rich people are getting richer.

Living in the Age of Financial Peer Pressure

“We live in the age of financial peer pressure. This is a big problem in some social circles. If one friend buys a house, then the others are ready to upgrade. If someone wears designer clothes or buys expensive gadgets, then the others have to follow suit. It’s an exhausting cycle that not only reveals an impressionable mind, it keeps people broke.” – Mikey Rox

Are you one of them? Do you have the same mindset? If your mindset is to impress other people that’s why you’re keep on buying new things, then, you will be soon in financial trouble.

Unless you will change the way you spend your money. When I was young, I have friend who always wear the latest Michael Jordan shoes. That was 1998, my friend’s parent is luckily afford to buy the latest shoes. I didn’t get envy because I know in the first place that my parents don’t want me to buy new shoes. They want me to live simply and learn how to prioritize. They can also afford it.

I save some portion of my allowance. I saved enough money to buy the latest Michael Jordan shoes. The shoes I bought look like what my friend is wearing. Me and friend go to basketball court. I felt like a superstar, a real basketball player. Many people are watching us. I enjoyed the game. I play with confidence. We (me, my friend and classmates) won the game. And I am the high-scoring player. That was a good experience because I bought new shoes using my own money.

Image Credit: Kit Ng on Creative Commons via Flickr — Peers

My sister noticed that I wear my new shoes. She told me,

“Don’t be like him (my friend). Focus on your study and soon you can buy all the things that you want without relying on our parents’ money”.

My sister is absolutely right. I focused on my study. I keep on studying. Now, I am reaping the rewards.

The lesson is simple. Don’t judge a person if they own something. What have you noticed with the story? My sister thought I bought new shoes by asking money to my parents.

Are you judging your neighbors? You can. But be careful on what you think of them. Don’t get jealous nor become envy if they have mansion, BMW car, successful businesses, healthy children, a smart kids, happy family – a prosperous life.

My friend is wearing new shoes. I told him, wow that’s Michael Jordan shoes. Come on let’s play basketball and use your beautiful shoes.

Peer Pressure to Buy a House and Luxury Cars

When my neighbors built a new house, drive a luxury car and own millions worth of assets. I will just tell myself “that’s good for them, they deserve it”.

I live my life very different from the movie scene. In most TV scenario, if the neighbors are getting rich, other people will talk bad things about them. They think he became a multi-millionaire because of illegal drugs, lottery or any income generating activities prohibited by law.

Change that mindset guys! It won’t help you succeed in life. You are familiar with Filipino crab mentality. Those are just myths. For me, Filipino crabs are geniuses. They want to stay on top. Staying on top should be your attitude. But carefully remove the people in your life who don’t help you improve yourself. They want to escape in one crowded place and live the life they really want.

Beginning today, stop competing with your neighbors. If they are getting rich and you are not. Something is wrong with you. First, you have a poor mindset. Second, you are not doing what rich people do. Less hard work, more smart work and make their money work hard for them.

Financial Peer Pressure – Big Problem in Some Social Circles

If your co-worker, friends, neighbors buy new things, should you buy new things also? Well it depends. It depends on how you and your family need the things so bad. But, don’t buy new things for the sake of making impressions. And the worst, you don’t want to make your friends think that you are poor. You don’t want to call by them a “cheap”.

Rich people don’t buy new things because their peers buy new one. They will think deeply about the money they will spend. They usually buy things that appreciate in value.

Real estate properties and paper assets like stocks and mutual funds appreciate their value. Cars and motorcycles don’t.

You better think about your financial future and your kids financial future rather than being afraid of calling you a “cheap”, “frugal” or “poor”. They just know you’re poor because you are not wearing new things. Mind you, wearing new things or having new gadgets is not the basis of how wealthy a person is.

It is how much their net worth. Ask yourself, how is my net worth today? Try to calculate all the value of the things that you have right now and subtract it to your liabilities (credit card debt, loans, etc.).

Peer Pressure to Spend Money

If your neighbor has a brand new car, it doesn’t mean he’s rich. If your neighbor is wearing fancy clothes and jewelries, it doesn’t mean he’s rich.

Whatever you think to them, whether you’re right or wrong, they don’t care want you think of them. After all, the real issue is “how do YOU do financially”. How do you spend your salary? Are you still broke? If you think you are, learn from the rich and successful people.

Are you keep on waiting your salary from month to month? It’s good to ask about salary increase, but it’s also great to know what’s going on to your salary. Did you spent it wisely or did you just let your salary fly away?