Got her own money. Her own car. Her own house. And multiple streams of income. What can I say? Investors make the best friends.
Not only do they have their financial stuff in order, but they can inspire you to do the same. I mean, who are we kidding? Even if they’re a work in progress, a real investor who believes in what their doing, focuses on the long-term to build wealth over riches, and helps others is on the path to success.
My life changed when I started talking about money, investments, and business with my friends…real-world everyday investors. Unknowingly, they have inspired me to invest without a financial advisor, write a blog, and in general, live happier.
If we’re the sum of the five people we spend the most time with, I think having an investor or two on your team is a winning strategy. They’re above average, intelligent, risk-takers, exciting, and so much more. They’ll motivate you to learn, do, and see more than you ever realized.
Of course, I might be slightly biased. But I’m here to make my case with ten reasons investors make the best friends. So let’s start by defining friendship.
What Is A Friend
Merriam-Webster defines a friend as a person you like and enjoy. Someone who helps and supports you.
There’s no magic number for the perfect number of friends or what makes a good friend. It’s all subjective.
But science has shown that friends are important. They enrich your life. Provide meaning, give you a sense of belonging, and increase happiness while reducing stress. They’re around for the good and the bad, without judgment. They provide support and unconditional love. There’s nothing better than a friend who can listen but also share what they’ve learned.
What Is An Investor
For this article, an investor is anyone who invests in stocks, real estate, cryptocurrency, currencies, commodities, personal businesses, and the list goes on. So, it’s anyone who is actively investing in something to create multiple sources of income.
Some investors invest in exchange-traded funds (ETFs), and others pick stocks. Some prefer real estate and others like cryptocurrency. Many invest in themselves and their own business.
My Top Reasons Investors Make The Best Friends
Investors put money into entities, businesses, securities, and themselves with the expectation of a future financial return on the investment. But what makes this person a stellar friend? Let’s get into that now.
- They’re Different
As much as I want everyone to be an investor, many people aren’t. A 2021 Gallup poll reported that 56% of people own stocks. However, lower-income households don’t own stocks at the same rate. Only 24% of households with a median income of $40K own stocks.
Investors are different. They’re focused on future financial success. And let’s face it, money matters.
Investors have a unique perspective on industries, the economy, and financial matters. As a result, they probably find value in things that most people would ignore.
- They’re Passionate
Get an investor talking about their portfolio, and you’ll see passion at its finest. True investors are like entrepreneurs. They use passion to drive business decisions, investments, and desire to seek knowledge. Passion can take you places.
- They’re Interesting
Every investor has a story. And it’s bound to be exciting and emotional. It’s impossible to be a long-term investor and not have gone through the emotional ups and downs of a few market turns. And with every direction change comes another story.
There’s always a story about the little engine that could. You know…that stock that you just didn’t know if it would make it, that one day skyrocketed. And there’s the story about a new company on the market.
- They Understand Life’s Ups And Downs
Ups and downs…ahhhh, this is the definition of the investor’s life. The market changes second by second and day by day. It’s never dull. I can watch charts all day to see the prices vary by pennies every second. It’s fascinating how news influences prices and, in 2021, how social media plays a role.
Your investor friend is excited one day and probably a little spastic the next minute. And some are crazy to be happy when their portfolio loses value on a red day (just kidding, this is actually the best buy-and-hold investor).
- They Know That Nothing Is Perfect
The market has taught investors that nothing is perfect. They understand that things will change over time. Interests, trends, and fads change just like the market. So, your investor friends will recognize that you’ll have good days and bad. Because in the market, they understand that what goes down (when it’s a good company) always comes up. So, they’ll be there to support you and talk you through the ups and downs.
- They Like Excitement
There is nothing like a new company on the market or a new store in town to go check out for investors. They like innovation and trying new things. And they’re more than happy to bring you along for the ride.
- They Know Their Value And The Value Of Things Around Them
Investors understand that not everything is black and white. They’re keenly aware of the exchange of value between buyers and sellers as well as the value between friends.
In investing, both the stock and the buyer have a relationship. As a buyer, you expect the stock to perform a certain way. Believe it or not, stocks expect shareholders to perform a certain way. Stocks need capital, and shareholders need profits. It’s complementary.
It’s no different with friendships. Both parties play a role in the relationship. They complement each other. Lift each other up.
- Investors Love Talking About Money And Investments
Investors love sharing what they have learned about money and the markets. Once you get them talking, it’s hard to get them to stop. They have an abundance mindset that makes them seek out more and more rather than focusing on limiting beliefs. Good friends and savvy investors like sharing what they know about their investments.
Believe me. You need someone who is talking about money and investments in your life. It’s not a taboo subject. So, the more we talk about money, the sooner we can stop pretending and start working towards generational wealth.
- They’re Always Learning Something
Investors thrive on making sound financial decisions. They’re constantly engaged in the markets and working on learning more. Whether they’re lying around on a rainy afternoon or driving home from a long day of work, they’re paying attention, learning, and thinking.
They enjoy listening to podcasts, reading, watching documentaries, home improvement shows, or Shark Tank. So you’re sure to open your world to new investments and opportunities with your investor friends.
- Their Money Is On Point
Drumroll, please. We have reached number ten. Their money is on point. Sure they might not be perfect, but they’re working on it. Real investors understand the concept of compound interest and dollar-cost averaging. They don’t want to go buck wild and forget their budget. They want to invest early and often, preferably every month.
So, they’re not going to encourage you to buy the stuff you don’t need. And they’ll understand when you can’t go out to dinner. They’ll be supportive of your budget. Honestly, they might plan a budget date to help you make one.
Tips to Invest Better with Good Investor Friends
A good friendship is a good investment. As such, investors make even better investments with good friends. Here are a few tips to help you grow your friendships:
- Talk about money. Your friends probably know more about you than you realize. They know what you like and dislike. They shape your values and how you spend your money. When they know and understand your long-term goals, they can help you stay on track. Can’t afford happy hour tonight; they’ll be the first one bringing over a dish for a potluck dinner. Maybe work on a budget via a zoom call on the last Sunday of every month.
- Talk about investments. Be honest about your successes and failures with money. Don’t be scared to discuss different company valuations. Talking about investing may spark ideas for new investments. And discuss expense ratios and management fees. These can eat up your investment over time. You want to share the good and bad of what you’ve learned.
- Be there for the good times and the bad times. Investing can be an emotional roller coaster. The highs are high. However, the lows can be pretty low. Unfortunately, not all investments end well. Some will fail. Friends must be there to support each other and help control your emotions. Fear of missing out and fear of losing money makes investors make mistakes. Investors must learn to control their emotions, and together, friends will do it a little better than the rest.
So there you have it. My ten reasons investors make the best friends.
As we move into 2022, it’s more important than ever to have friends you are comfortable talking to about money. With inflation rising and wealth inequalities increasing, we need to be living savvy and investing, so having the right mix of friends matters.
I have to say I love my investor friends. I was inspired to write this article by them. They consistently show up in my life and prove time and time again that careful assessment, calculation, and hard work pay off.
Now, I’m not saying you can only have investor friends. We need all kinds of people in our world. But it couldn’t hurt to add an investor to the mix. So I would encourage you to try talking about money and investments with your friends.
As a friend, investors will inspire you to 1) get your money right, 2) stress less, 3) and back away from the edge of selling stocks prematurely, and 4) and talk about investments regularly.
So talk to me in the comments. What do you think about investor friends? Do you have a few good ones who shared something valuable with you?
Theresa is a personal finance blogger. She writes content for busy professional women to take control of their money and investments. She enjoys reading, traveling, cooking, and writing. Her work has been featured on GoBanking Rates, Your Money Geek, Savoteur, the Corporate Quitter, Thirty Eight Investing, and more.