It’s often said that who you know matters a lot in life. It can matter with relationships, and it could matter with money.
For example, in terms of relationships, many people often meet their significant other through friends. Not always, of course. But friends of friends often become, well, more than just friends.
In terms of money, there is no doubt that it can help. Here are a couple of ways:
How Who You Know Can Help You Make Money
The most readily apparent notion many have is that it’s often who you know that matters when finding work. Frankly, that can be true in many circumstances.
Earlier in my career, when starting out, I was referred to a job by someone I had worked with in the past. The guy knew my work, had confidence in my abilities, and vouched for me with the prospective employer. Consequently, I got the job – which provided increased responsibility and compensations as well.
I’ve known plenty of people who have obtain jobs based on who they know. Not only that, but it’s essential in many organizations to know the right people to advance. Our ability to get ahead is very often based on how we are perceived by others with influence. So even within our jobs, it’s our relationships that can allow us to not only keep jobs but also thrive and advance.
Plus, who you know can help you in terms of identifying opportunities in general. This could manifest itself in terms of investment opportunities, real estate, and any number of other way.
How Who You Know Can Help You Save Money
Almost the other side of the equation from one’s career, it can help to know the right people when it comes to getting things done.
For example, if you need repair work done in your home or in your car, it helps to know someone who can find refer you to a place that does good, reliable work at a fair price. Or, if you’re a regular at a business, you just might get a discount. After all, customers they know – who are loyal and could refer others – can be really valuable.
One instance that I experienced was at a small “mom and pop” sandwich shop years ago. I was there by myself, stopping in for a quick lunch. I talked to the guy behind the counter, made small talk, and told him that it was my first time there and I’ve heard good things. He asked who I heard from, and I told him.
He then smiled, saying that the person I mentioned has been going there once a week for quite some time! This part made me smile, as I didn’t’ realize that. Now I know what that guy did over lunch, and he was probably using that place as an escape : )
Anyway, they guy at the counter said my first meal there was on the house! Apparently, the other guy was such a loyal customer that I become a good investment for the restaurant.
Kind of a roundabout what of benefitting from the “who you know” concept, but I wasn’t complaining!
Bottom line: it’s good to help each other out, and apply the “who you know” concept to help find opportunities to make more money, and save money too .
My Question for You: How have you seen the “who you know” concept work?
Readers: Check out my interview on Mint, on the topic of finances and relationships!