5 Friends Who Are Making You Broke, & How To Deal With Them
Hanging out with friends is a great way to fizzle out all the stress you’ve had while working to earn your keep. But at times you won’t be able to join your friends for a night out due to personal or even financial reasons. Here are some of the friends you should watch out for and how to identify them. Some people nowadays associate this kind of feeling of loneliness in an acronym – the Feeling of Missing Out or shortened as “FOMO”.
The Expensive Dinner Friends
It’s ok, when you’re on a budget and sometimes you want to treat yourself; you can have dinner out every once in awhile. That is until you get there, and you’ve stumbled into one of the fanciest restaurants in town. Then your friend orders an expensive bottle of wine, 3 courses and wants to just split the bill 50/50 because it’s easier.
Sometimes it’s safer to just have food eaten at home, but that doesn’t mean your friends can’t join in. Make a compromise; make food for all of your friends where they can bring their own food and drinks. You’d be surprised how much money you can save by cooking at home, and it feels much more rewarding cooking for your friends.
The “Broke” Friend
The opposite of the expensive dinner friend but just as bad. They never have money for anything. The rock up to a BBQ at your house with nothing. They never grab the last round at the pub. They ask if they can go in on a group present and then never pay up. It’s okay to be the broke friend, but it can be taxing on others when they’re all on budgets as well. The way to combat this is by limiting your times out so you can save a bit of money each week.
The Charity Mugger
Last month they were doing dry July, next month it’s some charity bike ride, the next month it’s something else. Then there’s the personal email and then it’s all done through some website where they will know if you didn’t give them any money. While raising money for charity is an amazing effort and is all for a good cause, don’t feel like you’re left out if your last dollar that you donated could have gone on food for this week. To make ends meet, you can set aside a small pile of money that can be used for such instances.
The Gift Giver
When you receive gifts at seasonal times, Christmas, Easter, Birthdays, it often means you have to give them a present back, and if it turns out to be an expensive gift then you end up forking out more. It can also feel bad on you if you end up forgetting or not being able to afford a present to give back. In these cases, it can always be easier to fess up and say you can’t afford it right now, until you can afford a useful, thoughtful gift for your friends or family.
The Keeping up with Appearances Friend
They’ve got a new car, nice clothes and a big house. They may tell you to treat yourself or more dangerously they may change your expectations of what’s normal. If you’re trying to fit in with your friends can often fall under the feeling of missing out. The feeling of missing out, most popularly known as FOMO, has got millennials spending money even though they can’t meet the expenses.
It is easy to assume that most young adults would rather lean on credit cards and accumulate debt than miss a night out with friends and debt, but it all adds up in the end. Here are some tips to help you fight the urge to take out a credit card or a loan.
Compromise Your Cash
Always keep in mind that if your friends are really true, they will rather hang out with you than suit their exquisite taste for nights out. Friends and debt doesn’t have to belong in the same sentence. Strive to achieve a middle ground toward more affordable bonding set-ups. If they really are your true friends, they won’t ridicule you for being vulnerable about your finances.
Prioritise what matters most to you
Going beyond your monthly budget, no matter how you justify your expenditures, will most likely breed discontent. You can quickly feel defeated inside even if you feel that you are secured in your finances once you see how everybody else is doing. Amidst the many things you’re interested in achieving, focus only on the causes that you really believe in. You are not obligated to be the best at everything and enjoy what everyone else is enjoying.
Practice contentment, always appreciate what you have and be grateful for what you can buy.
Your lifestyle is what you make it. Feeling bitter and resentful over the things you can’t have or do makes nothing better. Each one of us decides on spending money for what really matters. Your friend’s spending choices might not coincide or be the right one for you. Once you know how to separate friends and debt and make better financial choices based on your goals, you can truly say you’ve gained financial freedom.
Are you struggling to make ends meet with expenses going out each month? Check out our guide to how those little expenses add up.
Struggling with more than $8,000 of unsecured debt? You could be eligible for debt relief! Discover how to stop debt collector calls, freeze interest and fees, reduce payments and only pay back what you can afford. Start now with a free consultation
Free Debt Analysis
Safe, Confidential and No Obligation