Who You Know Can Help You Make and Save Money

by TTMK on October 9, 2014 · 14 comments

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!

 

{ 14 comments… read them below or add one }

Jon @ Money Smart Guides October 9, 2014 at 6:04 am

I’ve seen this when it comes to saving. I have a friend that is a car mechanic. Sometimes he will do the work on my car and I’ll buy him some beer or a pizza. Other times, it’s nice to just get a trusted opinion on what another mechanic wants to do. It’s great having someone I can trust in this field since you can easily get ripped on when it comes to car repair.

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TTMK October 15, 2014 at 7:06 pm

That’s an area in which it can be really helpful to know someone. Not just to save, but to get the job done right.

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Little House October 9, 2014 at 8:31 am

When I was a substitute teacher, I worked all the time because of referrals. I even landed my permanent position through a referral, so who you know definitely can help you make money! And as far as saving money, if you have friends or friends of friends who can help you out with services, you can save a little there, too.

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TTMK October 15, 2014 at 7:05 pm

That’s great that you’ve been able to capitalize on referrals that way.

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maria@moneyprinciple October 9, 2014 at 2:13 pm

I’m glad you raised this issue. It’s been a long time now since I’ve believed that who you know is absolutely key to both how much you make and how much you save. When we were still paying off debt aggressively, we still managed to go skiing, be away for the summer and even spend the occasional nice weeknd in Paris, Lausanne and Rome. It is all because of friends! Of course, to be able to partake in this kind of exchange you have to be prepared and able to give as well. It works when making money as well. I’m a university professor and at a level where the opportunities I hear about come mainly because of how well known I am (related to who I know of course but different). My latest side-hustle adventure though (buying a taxi) is completely dependent on who I know and trust.

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TTMK October 15, 2014 at 7:03 pm

Those are some good friends to have, with weekend vacations in places like that (yes, I know you’re much closer to those locations than I am here in the US, but still!). You do have a really good point on needing to being able to give as well.

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Jean @ NearlyRetired October 13, 2014 at 1:23 pm

I’ve been thinking a lot lately about the importance of community, in our daily lives and in times of need. Genuine friendships are incredibly important to our career and business opportunities. Your point our relationships also helping us on the flip side is great. I read a book a couple years ago called “Consequential Strangers” that focused on how much difference our casual interactions can make in our lives and the lives of those around us. Referrals, suggestions, small savings….it’s all part of our desire to help others.
Great article

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TTMK October 15, 2014 at 7:01 pm

Thanks, glad you liked the post. I’ve heard of that concept to which you refer, on how casual interactions can really make a big difference in people’s lives.

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Zee @ Work To Not Work October 14, 2014 at 1:32 am

It’s funny, I’ve seen people get jobs because they already know someone at the company all the time. Most of the companies that I have worked for probably have about 60% or more of their employees from referrals. Yet somehow I’ve never ended up getting a job this way, which for an many real jobs as I’ve had it’s surprising that I’ve never known someone who can help me out. I see it all the time, but somehow I’ve never benefited from that aspect of it. Maybe one of these days that will change!

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TTMK October 15, 2014 at 6:58 pm

Well, that’s good that you haven’t used that card yet. Perhaps it will come into play going forward!

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Poor Student October 15, 2014 at 5:35 am

Nowadays networking is becoming more important. I was looking for an internship a couple of months ago and found this company I was interested in, and on their ‘Job’ page they clearly stated that 50% of their intern hires came from referrals… Another one was this guys who was able to negotiate his salary better because he was recommended by someone who worked in the company.

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TTMK October 15, 2014 at 6:58 pm

50% is nothing to take lightly. That’s a quantifiable example that’s noteworthy.

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Dee @ Color Me Frugal October 15, 2014 at 11:09 am

I’ve definitely found that who you know can save you serious bucks! Our most recent example of that was this spring when our basement flooded. We had to put in drain tile and new carpeting. Because we walked into the carpet store and mentioned my hubby’s father’s name (he used to be a contractor and got all of his carpet from this store), we automatically got the same discount that contractors get. It was pretty sweet! Now if only I knew someone in every industry and in every store… 🙂

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TTMK October 15, 2014 at 6:56 pm

That’s a great example! I’m sure that discount was nice.

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