Peer pressure is something we all hoped to leave behind once we left school, but as long as there are social groups there will always be peer pressure. Finances are always a little awkward to discuss, yet nowadays people can’t seem to stop comparing their financial lives with those around them. A lot of this is due to social media. While we all know that what everyone posts is the highlights of their lives and not the gritty reality, we also can’t help but feel a little jealous every time we see a friend’s latest holiday snaps, or that distant cousin’s new car. Every time we see a post like that, subconsciously we are comparing it with our own lives. Combine this with the growing pressure to go out, spend money, buy the latest clothes and see the latest movies, and the financial peer pressure can feel overwhelming.
So how can you deal with this increasing pressure? The old familiar saying, ‘money can’t buy you happiness’ pops to mind and while you can certainly try shouting that every time someone brags about their latest purchase, the reality is that up to a certain threshold, money actually can buy you happiness. According to a study by the Nature Human Behavior Journal, people who make around £60,000 a year have the highest levels of happiness. However, earning more than this does not lead to increased happiness. Having financial security and not living from paycheck to paycheck may relieve a great deal of stress, but increasing your salary isn’t possible for everyone so it is not a very practical way to deal with financial peer pressure, so here are five more accessible options.
Cut toxic people from your life
If the people around you are making your life miserable, cutting ties with them might sound drastic, but it could be exactly what you need. While the odd comparison and feeling of envy is normal, if your friends regularly make you feel bad about how much you earn, maybe they are not really your friends. Surround yourself with people who support you and make you feel positive about the life you lead regardless of wealth and belongings.
Take a social media break
A great deal of the pressure we feel in our day to day lives is due to social media. We can’t help but visit those sites several times a day, catching up on all the latest from our loved ones and making sure we haven’t missed anything. However, if each time we click on that app we are adding to our stress levels and increasing the pressure we place on ourselves, it stands to reason that something needs to change. You don’t need to cut yourself off from social media completely but consider significantly reducing the amount you go on those sites, or take a break for a few days or a week and see how it affects the pressure you feel.
Be honest about your finances
It is very easy to play the victim and blame your unhappiness on your finances without taking full responsibility for how you are managing them. If you don’t track your spending there is a good chance that you are spending more than you think you are. With contactless payments and online shopping, it is easy to spend money carelessly without real awareness of how much you actually have available to spend. Be brutally honest with yourself and spend some time working out exactly what you have spent money on over the last six months to a year. Small things quickly add up and most people find that by cutting back on insignificant costs they can save money to spend on things they really care about or need. A few too many takeaways, for example, could easily be exchanged for a meal out with some friends.
Use a budgeting app
While budgeting might not increase your salary, it can give you control over your spending and allow you to decide what you can and can’t afford. The Balance has put together a list of 8 of the best budgeting apps to get you started. By planning in advance what you want to spend and what you are able to spend, you might not escape the financial peer pressure, but you can at least feel confident when you have to make snappy financial decisions. For example, if you are out to dinner with some friends and the idea of a group holiday comes up, a budgeting app will give you the confidence in your own financial situation to answer honestly and give priority to what you really want to spend your money on.
Get a logbook loan
Budgeting apps and avoidance tactics can only get you so far, however. At times we all want or need a little extra money, for whatever reason, be it a luxury holiday or an expensive vet bill, and for anyone with bad credit, this can be a nightmare situation. Taking out a logbook loan from a responsible lending company, such as Car Cash Point can be an ideal solution. The loan is secured against your vehicle, but you can still drive it as you normally would, giving you access to funds straight away. Financial peer pressure has driven many people to take out risky payday loans that they cannot pay back, but with a logbook loan you have greater flexibility and control over the repayments and longer to pay the money back.
