“Birds of a feather flock together” so the saying goes but have we tried applying this to our financial lives. To be a financial literate, you must carefully select your friends. They should be those who will not lure you into exorbitant spending. Choose friends with whom you can build financial goals with without feeling odd. You should choose friends who save wisely and believe in investing wisely. Financially speaking, there are three categories of people
- Those who are more financially literate than you. You are to make good associations with this people. In this way you would be able to learn from them and apply their useful principles to your life
- Those who are on the same level of financial literacy with you. Together, you can build goals and sharpen each other
- Those who are not financially literate. You can learn from their mistakes and avoid falling into the same errors they have fallen into. This group consists of those who have a mentality of poverty, those who are not prudent and spend lavishly what comes their way. Financially, it’s not ideal to make friends with them as they can try pulling you on their side. Speaking from experience, I have been a victim of a friendship that pushed me into spending lavishly beyond my limits. Before I knew it, I couldn’t account for my money.
Also, as we all know that iron sharpeneth iron; so will financial literates sharpen one another. Around us, there are people who are successful financially. There’s no need envying them, the best thing for you to do is to approach them and make good association with them. You should not be after their money but you should seek knowledge from them. Most of them are into successful businesses of which you can learn how they have made it, challenges they have faced and critical success factors.
Most importantly, learn from others but try to be your own unique being. He who walks with the wise will be wise!
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Originally posted on June 12th 2016 on www.thefinancialliterate.wordpress.com (A previous version of The Financial Literate Blog)