Regardless of how your finances are doing, your friend’s money situation may also influence how you choose to spend. Whether they are a really close friend or someone you see every now and again, it’s important to assess what money decisions you make when you’re around them.
If your friend is going through financial hardships or they have bad spending habits, it’s vital that you know how to protect yourself from this. Below are 6 types of friends that may be hurting your personal finances.
- The Overspender
This is the friend that is always willing to go out, spend money on new hobbies but has problems paying the important bills that matter each month. While this life can look very glamorous, life is also about maintaining a certain level of discipline and not having to worry when it’s time to pay bills. Creating a balance and boundaries will always be key in ensuring you stay on track financially. Try not to keep up with them, keep up with your budget and stick at it for yourself. If there is something you want to do with them but it sounds costly, be sure to ask how much it’s going to cost you and be willing to say whether or not it is within your financial means.
- The Penny Pincher
Budgeting is one thing but having a friend that makes too many budget cuts can become more expensive than anticipated. Having a friend that buys the cheapest clothes may mean that they are constantly buying the same thing and it becomes more costly than getting one or two quality items. The friend that buys the cheap car may result in constantly having to fork out for repairs. Being friends with the penny pincher doesn’t have to be a burden but it’s important to create your own standard of what is cheap and what is worth spending your money on.
- The Sponger
While the aim is for all of us to save money, there are some people who are willing to go the extra mile at the expense of your pocket. This friend may make particular suggestions that make you uncomfortable however it’s important to be clear about your mark. Be sure to let this type of friend know that you are saving money and focusing on getting your finances in order. With the right tone, this can be discussed without seeming defensive and without making them embarrassed. The best way to tackle this type of friend is to do things that don’t require much money. Avoiding eating out may be best in this situation!
4. The Enabler
The enabler is the friend that allows you to buy anything you think you need. This is the friend you should avoid going shopping with because every dress you try will be fabulous and going in the basket. Before you know it, you’ve spent more money than you realise and you forget that there is a direct debit that hasn’t been taken out of your bank account yet. Reality can hit fast when you forget that most transactions take 3 working days to be removed from your account. When everything is said, done and tried on it’s only you and the remainders of your bank account left. If you decide to go out with this friend, it’s worth bringing cash instead for your budgeted spending. In this situation, your friend can give you an ego boost about many dresses but only one dress will make the final cut.
- The Intruder
The intruder may be more of an associate than a friend. Regardless of the level of friendship you have, the intruder wants to know how much everything is. They want to know much you pay in rent/how much your house costs, how much your annual salary is and how much you have in savings. Be cautious of what you share and who you share it with. For example, a colleague may want to know your salary to try and get a raise but they may discredit your work in the process in order to make themselves look better. A relative may want to know how much you earn so they can find a way to talk about their money hardships. The best way to defuse this situation is by saying that you’d prefer not to discuss the ins and outs of your personal finances. Done and dusted.
- The Baller
The baller is the friend who is always dining at the nicest places and they are always going on the best holidays. While you enjoy watching their story on Snapchat or flicking through their Instagram images, you may not enjoy dining at the finest places that will cost you a pretty penny every time you want to hang out with them. If you are the baller amongst your friends then it’s worth asking your friend to choose where you go. If you don’t feel like you’re the baller friend then ask if you can stick to a budget. There’s no need to feel insecure, everyone experiences a taste of more money at different points in their life. It may also be good to evaluate what you really want in your life if you find yourself feeling envious one too many times.
What’s best to remember about the baller friend is that they may not always be making the most money, they may just spend money very differently to you.
Whether or not you fit into any of these categories, always try to be the friend who is level headed at least 85% of the time. It may save you a lot of financial distress, in the long run, to become sensible when it comes to your money.
This post was written by Bola.