It can be very hard to live within your means, let alone save money today. There are so many things calling at your finances – family, friends, the internet, rent, food, clothes, your health, and many more. One of the worst of these are friends. Friends are generally there to make your life easier but where money is concerned, they could leave you broke for all the wrong reasons. Here are the two major ways this happens and how you can circumvent them.
- Lending Money To Friends
I’m sure we can all relate to this. Every now and then, our friends need to borrow money from us and we give them if we have. While it is natural to lend your friends money when they need it, it is one of the fastest ways to lose track of your finances. For one, giving them money especially without collecting interest, is as good as you putting your money in a box in an unsecured place. Anything can go wrong and there might be nothing you can do about it in the long run.
How much money have you lost this way? Sure it’s a good amount. Depending on the kind of person you are, there are various ways to curb it. You can choose not to give above a certain amount, give to only very trusted people, or simply put your money on investment platforms so you really don’t have much cash to spare. If you keep lending money, there are high chances that you would get disappointed and broke from depending on somebody’s repayment to survive. It’s not a good way to live.
- Habitual Social Activities
It is okay to have a social life. In fact, it is important to have one so you don’t live a straightjacketed life. However, when that social life starts to empty your pocket consistently, you must watch it. This is another way friends directly or indirectly leave you broke. Many people have been forced to live beyond their means because they have to belong to a certain class and blend in with their friends. Some have gotten trapped in social gatherings where they simply have to let go of funds they didn’t plan to. However, more often than not, we lose money to this in more subtle ways. Trips to the cinema, drinks after work, live concerts that are not too pricey, and so on. The challenge with this is that it never looks material when you’re spending it so you might not feel the need to stop it.
However, because of the frequency of these, the monthly total spent on just hanging out with friends would make up a whole lot of your income. This is one of the fastest ways young people lose money. To control it, as odd as it sounds, reduce the number of friends you have. Moving around in cliques cost you more than you gain most times – some of these friends are only useful in these scenarios and almost no other time. Next, try not to be easily influenced. Go for some, and for the ones you would rather not go for, stand your ground. It would also help to have a budget in a separate account for these events. No cash, no outing.