Does what other people think about you affect the way you live?

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I am just curious to find the answer to this question myself. I have a lot of friends who says it doesn't matter what people will say about them, but then when they are actually supposed to do something they worry that someone will comment on their actions. I mean what gives? It's just my opinion, and you may call it a little ranting, but I am a firm believer that WE, OURSELF, should be the one who should be "directing" our own life. I'm not saying that we should do anything as we please without any regard for any other people. All I'm saying is that if we want the real kind of happiness, this elusive freedom that all of us are wanting since the day we learned to say dada and mama, we should gain a little courage and some backbone to do the things that will make us happy if not entirely contented. Don't complain that this and that went wrong because this neighbor, that co-worker, that friend, said something or other to change your mind. Be responsible for your actions and push through with your decisions as long as the outcome will affect you and not put anyone else in a compromise. What do you think guys? Is it really THAT important? Would you really put your happiness at the back worrying that someone will say something bad about you?