Whether we recognize it or not, our financial choices are influenced by a litany of external factors. Factors I refer to as financial culture. What is financial culture? It’s a combination of widely accepted norms surrounding money, fashionable financial objectives, contemporary spending patterns and common financial aspirations (i.e. the American Dream).

It feels as though we are surrounded by a continuous undercurrent designed to pull us into mainstream financial ideals. Unfortunately, the prevailing financial culture right now seems to be:

• Get by on limited financial knowledge and trust the “experts”.

• Maintain no tolerance for sacrifice, buy it now and worry about paying for it later.

• Material things are the primary status symbol, the more stuff you have the better your life will be.

• Appearance and optics are what counts, do what you need to do to LOOK like you’re winning.

The effects of mainstream financial culture doesn’t stop at the list of things above. There are other harmful impacts. For example, mainstream financial culture says money is a personal subject that doesn’t need to be discussed with anyone else. So rather than collaborating and collectively share ideas around money, we trend more and more toward individualism and silent competition. We also tend to take advice from the loudest voices, who in many cases have ulterior motives.

Mainstream financial culture is rife with easy credit and higher debt tolerances, which makes it easy to conceal financial shortcomings. People in financial trouble look pretty much identical to people who are not. They dress the same, drive the same type of vehicles, eat at the same restaurants and vacation in the same places. Plus, we have social media to post the highlights of our life which makes it even less likely that people will know the truth.

We live in the most prosperous nation in the world. Many individuals and families earn good income, yet many of them are still just one paycheck away from having everything fall apart. Something is wrong with that picture. Unfortunately, I don’t see mainstream ideals changing anytime soon, which raises the question, is it time for a financial culture shift? I certainly think so. Allow me to suggest three things that could help bring about that shift.

#1 Don’t let mainstream ideals dictate how you spend money. 

When it comes to personal finance people tend to embrace herd mentality.They are most comfortable making choices that are considered the norm. Two examples that immediately come to mind are homes and engagement rings. In the home buying process the bank sends out a prequalification letter that specifies the amount they’re willing to loan us. In most cases people use that letter, not their personal budget, as the benchmark for the type of home they will purchase. When it comes to buying diamonds, the industry rule of thumb is you should spend 2 months of your salary. The silent implication behind this recommendation is if you spend less, you’re being cheap or not keeping up with everyone else.

Rather than letting a bank or a diamond retailer dictate how much money you spend, how about deciding how much you can afford and then find something within that price range. I realize the housing market is out of control in many areas. Perhaps that means continuing to rent for a little while longer. Perhaps it means going a non-traditional route such as co-purchasing or going with a less expensive option like a “tiny home’ or container structure. As far as rings, lab made diamonds and moissanite are both good looking, less expensive alternatives to traditional diamonds. The point is, you can’t be afraid or ashamed of doing something that’s considered to be outside the “norm” if your overall goal is financial freedom.

#2 Resist the magnetism of consumer culture.

Without question, we are the most marketed to, psychologically manipulated culture ever. We receive consumer messaging via television, radio, online, billboard, email and text. The attempts to get more of our hard-earned money are unprecedented. Guess what, it works! Every single day people make choices that make little sense financially on the whim of emotional appeal.

I’m not against having things but there is a point when accumulation becomes counterproductive and damaging to your overall financial situation. How many vehicles do you need at one time? How many pairs of shoes do you need? How many bedrooms does your home have to have?

A financial culture shift isn’t about lowering your standard of living. It’s about making sure your spending habits remain in line with your financial capability. Otherwise, you’re making choices to the detriment of other important things such as saving for retirement, paying off debt or building savings to insulate yourself from unexpected expenses. Things that actually provide stability and peace of mind. Consumer culture will always entice you to acquire more. It’s up to you to say no.

#3 Don’t assume your financial situation will automatically get better over time.

I’m convinced that most people believe their financial situation will get better with time. Hopefully, that’s true. I’m all for optimism but that belief has to be rooted in something other than just blind optimism. You can’t count on time to do what you can make up your mind to do right now. Trusting that your financial situation will get better eventually without adjusting your current pathology is a recipe for disappointment. If you want to see things improve, commit to making the best financial decisions possible with your money. Change comes from breaking bad financial habits and making some sacrifices. If you’re not willing to make the necessary changes today, it’s very likely that five years from now things will look pretty much the same. Time won’t make much difference.

Conclusion

When it comes to money it’s true the deck is stacked against most of us but don’t let that hold you back. Be determined to blaze a new trail. Instead of playing the game by rules designed to benefit somebody else, make a shift and play by your own rules. Rules that lead to the financial outcomes that you truly desire.

When was your last financial physical?