Can Your Friends Help Save You Money?

by Galia Gichon on July 15, 2010

There is no question that your friends can help you save money, but how? I have two stories to share with you:

* Success of a Money Buddy

* Your Friends Can Help Your IRA

Success of a Money Buddy

Recently two of my favorite clients teamed up to become each other’s money buddies. Each Monday they check in via email examining each other’s financial actions and how they relate to their overall money goal. They also put forward what they would like to accomplish the next week and any other small goals they might have. In a short period of time, they are already seeing money progress! One key goal that has come about is asking for more money. One woman is a business owner and realized she wasn’t asking for enough money. More importantly, she didn’t think she was worth it (even though she definitely was!). If you can’t find your own money buddy – here are a few other suggestions to help you achieve the success of a money buddy.

* Get regular reminders sent to you. They really work! A recent study showed that when people were sent text messages by their banks to save more, their savings rose 6% (Dartmouth Economics professor Jonathan Zinman). * Say your goals out loud. Look into the mirror and say them out loud every morning before you start your day. They have told me that the money matters affirmations in the “MY MONEY MATTERS” kit worked well too!

* Keep track of your accomplishments in a journal.  Why just write down your expenses and bills?

* Say your goals out loud.  Look into the mirror and say them out loud every morning before you start your day.  While you are at it, my money matters affirmations.

Your Friends Can Help Your IRA

We all know we need our friends. We need friends for many reasons: fun, sharing, support, activities. But did you think that you needed friends for a more successful retirement? Actually, it’s true; they can help quite a bit. According to a recent study by the Pew Research Center, friendship matters as much as health and finances to increase happiness. 38% of retirees that were happy in their retirement (i.e. they were in control of their money) were also very happy with their friendships. Whereas 14% of retirees that were happy in retirement were not content in their friendships. This doesn’t mean you should stop contributing to your 401k or stop making your SEP contributions a priority, but it means that focusing on your friendships and creating your money support community will only boost your odds of a more successful retirement. So what can you do?

* Find other people in your community that feel strongly about creating savvy money habits. I recently coached a client about creating a money success group in her community.

* Find a hobby that fosters social connections: sports, arts, volunteering.

* Start a money book club.  Book clubs are fine and why not read a motivating money book with a group of gals you love to chat with anyhow?

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