Having friends is a good thing. They are a support system during tough times and celebrate the good and fun times. But there is also a reason they advise you from a young age to avoid bad company.
Even now, the company you keep can hugely impact many life aspects, including your spending habits. Do you feel pressured to eat out or buy a pricey phone because your closest friends have such gadgets?
Consumer research shows that peers, more than anything, can influence purchasing decisions, some of which may adversely affect your wallet.
Here are some of the friends you need to avoid for the sake of your wallet.
Why would you bow to peer pressure spending that can place a massive drain on your budget? Pressuriser friends aren't helpful for your finances, especially if they habitually create random plans to spend and urge, even push, you to participate.
When you can't, they give you a hard-cold shoulder. They might create an event or a shopping spree where they include you in their plans whether you like it or not.
A worse situation could be if you are short on cash, or the expenditure is on things you do not need or stuff that places a strain on your budget.
No one should ever strong-arm you into splurging because you might have different financial plans than them.
It would be beneficial if you did not put off dropping such friends because they do not correspond with your financial priorities. The faster you run, the better your financial situation will be.
Read Also: Money and Me: How I lost Money to Friends
It could be time to set boundaries with the friends who presume you are their financial/meal ticket. This includes friends who will guilt-trip you into paying for everything when you go out and avoid meeting their financial obligations.
Friends that won't budge even when you insist on splitting bills and instead rely on you for every financial requirement aren't doing justice to your wallet.
Are such friendships worth keeping? Nope. No one should make you support them unless you feel the need to do so. Standing up for yourself sometimes entails avoiding them totally, not only for your financial health but also for your mental health.
Do you have a self-absorbed friend that always has something to whine about? If you hang around with friends who see no good in their present or future, you may have to let them go.
They don't positively influence your emotional, mental and financial mindset. They only see unworkable situations and aren't a motivating force for your positive money mindset.
Pessimism, a lack of self-driven initiatives, and creativity in people who surround you could be why you can't make the necessary practical steps to improve your life and your wallet.
It is not uncommon to have a circle of friends that would encourage you to spend money on things because you deserve it. Even when they know such things aren't essential, they would still nudge you into buying them.
Some would say that you shouldn't deny yourself some indulgence because you have worked so hard. Such friends think they are doing you good because they indulge you. Again, most enablers may not have bad intentions. Yet, they are an ever-present risk to your finances.
A few boundaries with such friends could help. But you might have to avoid them entirely if they still jolt you and prod you into making purchases that negatively affect your net worth.
Some friends can weigh you down because they are always desperate for money. Here are some perfect examples:
1. The financial trainwreck that is constantly broke
They're friends who might have the most desirable job with excellent pay. But they are always broke. It means you might, time and again, have to fork out to settle their bills.
Sadly, such friends will also not hesitate to borrow money from you and not repay. How can they pay back your money when they never seem to have any in the first place?
You wonder when they will ever stand on their two feet because they have never been financially accountable. Such friends will make you question their loyalty and reliability, and it's time to say no to them. And if the word has no effect, then drop them altogether.
2. Friends that will always forget their wallet
It is okay to foot the bills for a friend who forgets their wallet once in a while. But when it's habitual, and you have to pick up the check every other time, they are not worth your time, effort, and money. Some are cheap and will use every excuse in their rulebook to wiggle out of their financial obligations. They target your finances, leaving you poorer.
A genuine friend might be eager to share exciting news. Perhaps they made that once-in-a-lifetime purchase and know you will be happy for them. But what of those that want to rub their successes in your face?
Show-off friends have a common agenda - to make you feel jealous. They will boast about how they are better off financially or position-wise. Once they purchase the latest iPhone, they won't let you breathe, bragging nonstop.
Would you want to keep the company of such an individual? They aren't worth your friendship because they do not understand that each individual has unique needs and priorities.
Your goals and theirs are different, and while they can afford to splurge, the same might not be part of your budget.
How about friends who make fun of your income because it's either too little or too much? Irrespective of your worth, no one has the right to make jokes about it.
A disrespectful friend would take the mark too far, and it is not healthy for your emotional and financial well-being.
What do you do in such malicious instances? Give your friends a wide berth, and establish only healthy, positive, and motivating friendships.
Friendship has many repercussions. Having someone there for you when you need them the most is one of the most crucial things. Among friends, the quid pro quo has never been more crucial.
However, you might also have those friends who would readily accept help but give a blind eye when it is your turn to need a helping hand, especially financially.
Why would you keep one-sided friendships? Why would you go the entire haul to help and get nothing in return? No matter how charitable you are, there comes a moment when you tire and end the acquaintance.
That whole circle of friends isn't necessarily wrong. However, it may consist of different traits and personalities, some of which may cause harm to your wallet if you let them.
Once you notice anyone is leading you into bad financial habits, dropping/avoiding them might be your best resource.
Let any friends you acquire align with your financial goals and aspirations. It's the best way you can grow money-wise.