I think about money and retirement a lot. I believe it’s important that we communicate with one another to share our thoughts on money with friends. This can help you determine if you’re on the same track as your peers or to learn ideas that can help you save or generate more money.
Discussing money can help you to brainstorm financial problems that you might otherwise not have figured out on your own.
So why is it that my friends don’t want to talk about money?
Just to test the waters, sometimes I’ll lead a conversation with friends into the subject of money – maybe retirement accounts, rentals, or even just saving money. It always gets squashed quickly and they move onto another subject. I would love to share some of the things I’ve learned and pick up on some information they might know, but it just doesn’t seem to happen.
Now, this isn’t all my friends – I have some friends (not very many) that are open and we have really good discussions about money. And I’ll lump my brother in there as we talk about money all the time, but, I would say the majority of the people I associate with still tend to down-play any such conversation.
My inner circle of friends are your everyday middle-class kind of people. They work hard and make a decent living, but from what I gather don’t save a lot of money or plan too much for the future. I don’t know for sure though, because like I mentioned, they tend to be very reserved about money discussions.
It’s kind of ironic considering we talk about everything else like it’s no big deal – subjects that should really be the ones you wouldn’t want to discuss! But for some odd reason, the majority of my friends consider the subject of money to be taboo.
Too many people look at the topic of money as something personal that should be kept to themselves. I think that can be a big mistake. If you want to be in better control of your future, one of the best things you can do is to discuss your finances. This is how we learn and grow. Maybe you don’t understand just how important that match is on your 401(k), or that you can take out all your initial contributions to a Roth IRA penalty-free at any time, or subjects like annuities, or even the differences between whole and term life insurance.
Now I’m not suggesting that you just follow a tip that your buddy gives you without a second thought. You really want to thoroughly understand any investments that you make, whether by discussing with a financial planner or by doing complete and thorough research yourself. However, there is a ton of great info that you can share with your friends that would benefit everyone.
I would love to discuss the advantages of buying a rental house with my friends and how this can really set you up with a great passive income stream in the future. I would also like to share the downsides to it and the mistakes I’ve made in that aspect. And I would enjoy learning any money lessons they might provide, but I guess that’s not in the cards.
Conversations about money are also important for motivation. If you don’t get off your butt and make any changes or put it off until tomorrow, you’ll look back and realize that 30 years have passed and you really shoulda, coulda, woulda. It makes it a lot more difficult to miss the years of growth if you don’t get things going as soon as possible. And just having those discussions might be the motivating factor needed to help you make it happen!
On the flip side, I do try to talk about money with people who I know make a good living such as the mentors in my life. From these friends, I learn some important decisions that can dramatically affect my finances. I learn from both their successes and mistakes they have made along the way. But I wish more people in my life would be a little more open to money talk.
Maybe I’m too partial to the subject of early retirement and financial freedom. I’ve learned that a lot of people just don’t care about that. However, even if you’re not looking to retire early, you still need to be planning for your future if you want to stop working sometime before you die.
What about you? Do you discuss money with your friends? And are they open to talking about it?
Thanks for reading!!