Poor financial management could be due to a lot of factors, one of which is the company you keep. Who are your friends? What do they do? If they are any of those mentioned below, you just might want to avoid them:
1. The extravagant friends
These are very expensive friends who live nothing short of a glamourous life. They are the kind of friends who would go have lunch at The Sheraton and want you to tag along. And just so you don’t ‘fall your hand’, you end up spending above your budget.
To be honest, this category of friends help you mix with the high and mighty. However, they can ruin you by making your account go red. This isn’t to say you can’t keep them, but, you should learn to say no to some of their outings.
2. The ‘live above your means’ friends
These friends, unlike the extravagant ones, are worse. That’s because they cannot actually afford the things they go after. They borrow, buy on credit, and sometimes steal. They love to pull others along into their folly. If you hang out with this crew, you’ll not only spend money on things you don’t need, you will spend on their behalf on things they don’t need.
3. The ‘bill is on me next time’ friends
Friends like these would persuade you to go out to have fun, but they never foot the bill. It’s either they left their debit card or didn’t remember to take cash. There is always an excuse! Such friends should be kept at bay, because all they know how to do is show you the good life and watch you spend your money living it.
Top Flexxzone Picks
- Tips to manage financial risk
- 6 things you spend money on as a student
- Developing a saving culture: how to discipline yourself
4. The borrowing friends
Lending or giving money to friends in need, is an act of kindness and should be practised. However, you need to draw the line when it comes to friends who borrow with a promise to pay back, only to come back borrowing more, without paying up any of the previous loans. To avoid coming across as a stingy person, have a budget for charity cases. So, when friends like that come around, you can give from that budget. Once the budget is exhausted, keep your money.
5. The shopaholic friends
There are friends who are obsessed with shopping. With this kind of friends, it’s best to take to your heels and never allow yourself to be dragged on shopping sprees with them. They are the kind of friends who go to the market and pick things they don’t need, just because it caught their fancy. They are habitual wasters and would waste your money, too, if care isn’t taken.
It’s perfectly okay to have friends who spend differently. The key is making sure you don’t let their bad habits bleed into your own life.
Be mindful of the friends you keep. Everyone’s pocket differs. Don’t put a financial strain on your parents or guardians just because you want to “belong”. Stay WOKE!!!
Found yourself in this situation before? Share with us.
Pingback: Setting the right monthly budget