How Rich Friends Can Make You Wealthier!

Did you know that having rich friends can help you save and invest more?

A recent study* found that if you have wealthy friends, you're more likely to pick up good money habits. Researchers looked at over 72 million Facebook users and 21 billion friendships. They found that being friends with richer people can make you more likely to save and invest your money wisely.?

As a financial psychologist, I can tell you that our social connections significantly influence our financial behaviors. Here’s why having wealthy friends matters:?

• Learning from Friends: Your rich friends can provide insights into job opportunities and smart ways to handle money. Observing your rich friends can help you adopt practices that can improve your financial health. You can mimic the financial behaviors that lead to their success.?
• Better Financial Habits: When you see how your wealthy friends save and invest, it can inspire you to do the same. This phenomenon, known as social modeling, means that surrounding yourself with people who have good financial habits can encourage you to develop the same. You might start budgeting more effectively, investing wisely, or avoiding unnecessary debt because these behaviors are normalized within your social circle.?
• Increased Income: The study also found that poor kids who had wealthy friends ended up earning 20% more as adults. This suggests that the influence of wealthy friends can extend beyond immediate financial behaviors to long-term economic mobility. By interacting with wealthier peers, these individuals gain access to networks and opportunities that they might not have otherwise encountered.?

So, next time you’re hanging out with your friends, remember that they are shaping your financial future one way or the other. Choosing to surround yourself with people who have positive financial habits can be a game-changer for your financial health.

Happy saving and investing!?

Dr. Brad Klontz?

P.S. If you pre-order my new book, Start Thinking Rich, you'll get complimentary access to my Start Thinking Rich Community and upcoming Masterclass (a $4,997 value). Here's the link to learn more: https://startthinkingrich.com/bgroup

*Chetty et al. (August 4, 2022). Social capital 1: Measurement and associations with economic mobility. Nature, Volume 608.