Hi friends.  We are excited to share, 5 Types of Friends That Can Improve or Ruin your Financial Life, by Stacy B Miller this week.  Thank you for providing this great post for us!!  We really enjoyed it and appreciate the time you took for us!!

Parents are always worried about the people with whom you interact with.  This is because friends and relatives have a significant impact on your thought process, perception, habits, lifestyle, and so on.  Some friends can help to bring a positive change in your life whereas other ones can ruin your life.  For instance, frugal friends can help you to save money whereas a freeloader will always enjoy various things with your money and push you towards debt problems.  So, you have to be careful about the types of friends you interact with.

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5 TYPES OF FRIENDS THAT CAN IMPROVE OR RUIN YOUR FINANCIAL LIFE

 

 

HERE ARE THE 5 TYPES OF FRIENDS WHO CAN MAKE A SIGNIFICANT IMPACT ON YOUR SPENDING HABITS

 

1. The pressurizer:

A pressurizer is the one who sends you on a guilt trip when you refuse to have dinner in an expensive restaurant due to financial crunch.  Even if you say that you’re on a shoe-string budget and can’t afford to have a pricey drink in an upscale restaurant, your friend will still pressurize you to go for it.

“How much would you lose by having dinner in a restaurant?  Is money more important for you than your friends?  What will you do with the money if you can’t participate in social activities with friends?”  You will often hear a pressurizer saying these lines.  A pressurizer is least concerned about your financial life, and won’t give you any debt solutions.

You have to draw a line when a pressurizer is forcing you to spend money just because all are doing it.  You shouldn’t spend money due to guilt or pressure.  Tell your friend politely that you can’t attend the musical concert but you can meet him/her at a cafe after the show is over.

 

2. The shopaholic:

It’s fun to be with a shopaholic friend because he or she loves to shop.  Be it shoes or clothes or accessories, a shopaholic friend has a big eye on everything.  A shopaholic friend is always buying something and also asking you to upgrade your wardrobe simultaneously.  In other words, he or she is forcing you to spend money.  A shopaholic friend is always encouraging you to buy that cocktail dress you just tried on or purchase sexy stilettos.

A shopaholic can make you broke if you always act as per his/her advice.  He is the one to throw you into a pool of debt without even realizing it.  If your friend is wealthy, then he won’t get into debt.  However, if you live paycheck to paycheck, and shop recklessly, then you would get into debt.  Indeed debt solutions are there, but it would take a lot of time to solve all your financial problems.  And, why would you even get into a mess in the first place?

To save money, carry a limited amount of cash when you’re going to meet him or her.  Also, think about some fun activities, which both of you can enjoy.  Go for a walk or watch a movie at home together.

 

3. The miser:

A miser is the one who hates to part with money.  It isn’t that he or she doesn’t have enough money in the bank account.  It’s just that he or she doesn’t want to spend money.  A miser friend is always eager to know about the various ways to earn dollars.  But, he or she isn’t ready to spend dollars.  He or she is the one who would always say that you should spend more on the dinner bill since you had an extra bite of the pizza.

A miser would never come forward when it comes to sharing expenses in a group gathering.  This creates an indirect pressure on others to cover his or her share.  Now you have 2 options.  Either you can stop interacting with a miser friend, or you can refuse to cover his or her share.

If you keep on accepting his or her tantrums, then you would drain your bank account.  So you have to give him an ultimatum.  Either your friend will pay his share or he will stop participating in a group gathering.

 

 

4. The frugal:

A frugal friend is the one who loves to enjoy at an affordable price.  A frugal friend is the one who will make you understand the importance of money.  He will take you to a cafe where you can get amazing food at a moderate price.  A frugal friend will show you some thrift stores where you can buy designer clothes at half the price.  He will tell you different ways to earn dollars and save them.  Somewhere down the line, a frugal friend will make a positive impact on your spending habits.  You will learn to create a budget, spend less on unnecessary things, lead a humble lifestyle, save money, and avoid debts.

 

5. The freeloader:

A freeloader is someone who loves to have everything without spending any money.  She wants everything free.  If you plan to have dinner with her in a restaurant, then she would ask you to pay the bill and promise to pay her share later.  But a freeloader friend would never pay her share later.  Even if you remind her, she would never pay the bill.  She would always find an excuse.  If you give her a loan, then never expect to get back the money.

A freeloader friend would always try to use your friendship to milk money.  So, you should stay away from her.  And, if you can’t avoid her, then you have to learn to say ‘no.’  There is no other option.

 

Conclusion

Friends can have a serious impact on your budget and savings both in a good and bad way.  If your social circle mostly consists of pressurizer and freeloader, then you have to set some ground rules.  Otherwise, it will be difficult for you to build a strong financial house.  However, if you have a few frugal friends who help you to save money, then embrace them with your arms.  They are your good friends who can help you to save money, find debt solutions, and build wealth gradually.

What types of friends do you have?  How are they affecting your spending habits?  How are you dealing with your friends?  Share with us.

Author Bio: Stacy B Miller is a writer, blogger and a content marketing enthusiast.  Her blog vents out her opinions on debt, money and financial issues.  Her articles have been published in various top-notch websites and she plans to write many more for her readers.  You can connect with her in Facebook and Twitter.

 

 

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