The temptation to give in to peer pressure is very strong. As with most other peer pressure, giving in and following the crowd can be very bad to your long term financial health. Below are three tips on how to stop following the crowd and make the best financial decisions for you.
Gain Knowledge
One of the main reasons we follow the crowd is just our lack of knowledge on a particular subject. We get student loans because we hear things like, “it is the only way to pay for school.” Or “everybody has a car payment; you can not live without one.” Once we gain knowledge and understanding about why we are doing something that is different than normal, it is much easier to say no because you can explain why not.
Know your goals
Having knowledge, however, can only take you so far. You need to have defined financial goals that will help you stay focused when you are feeling tempted to divert from your plan. Thinking long term with your finances instead of week to week makes it easier to say “No” to short term thrills.
Get new friends
This might sound harsh, but if your circle of friends are leading you astray it will be very hard to reach your financial goals. Imagine what you could do if you were around people that were like-minded and encouraged you instead of tearing down your goals and pressuring you into doing bad things financially?
Remember if you listen to “He said, I heard, and everybody says” your whole life you will be broke! Your ability to say no and do the right but weird thing financially is crucial to your succeeding financially.
So what are some things that you do to not follow the crowd?
I haven’t had cable for over 15 years and my car is 11 years old!
Wow you are definitly NOT following the crowd on those two things Dee! I love it, keep being weird.
We will be buying our next car (used) with cash. No more car loans for us.
That’s pretty cool Melissa! The first cars to pay with cash are always the most difficult, but once you get over that hump, there is no turning back! Thanks for sharing.