How Your Circle of Friends Can Make or Break Your Financial Future (and What to Do About It)

At first, Megan thought hanging with her school friends would help her weather tough times—after all, they all worried about bills and joked about the stress of their jobs. But when she nervously mentioned her plans to start a side business, the jokes turned sharp, and someone asked, 'Isn’t that risky?' It took months for her to see that her closest circle, while full of good intentions, actually kept her from thinking bigger.

When Megan joined a weekend meet-up for people interested in entrepreneurship, the conversations changed. Instead of rolling eyes, she heard stories about launching projects, handling setbacks, and finding creative work-arounds. Bit by bit, her confidence grew. She didn’t stop loving her old friends, but she now prioritized time with those who challenged her assumptions and offered encouragement when she stumbled.

Social psychology research shows that our beliefs and habits are deeply shaped by the people we spend the most time with. We pick up on shared values, language, and expectations—so upgrading your circle is sometimes the most important change you can make for long-term success.

Write down your five closest contacts and reflect on their attitudes toward risk, change, and financial independence. Notice how your group conversations tilt toward growth or sticking with the status quo. If needed, seek out one new relationship with someone who inspires you and supports your bigger goals—whether that’s a local group, online forum, or a casual mentor. The company you keep truly sets the ceiling for your potential, so give yourself permission to choose wisely.