Many young people try to keep pace with their friends financially or try to follow their financial habits. Your friends affect your finances in a big way by influencing your savings and spending habits, which may lead to acquiring bad habits for your finances.
Here are 5 bad financial habits you should not acquire from your friends:
- Keeping Up with Their Lifestyle
If your friend buys something from a brand name shop and asks you to buy, you end up buying without realizing that it would affect your monthly budget because you feel the pressure of keeping up with the lavish lifestyle of your friends. Spontaneous shopping is a bad habit you should not develop just to keep up with your friends.
- Shopping to Socialize
If your friend uses shopping just to socialize or uplift their mood, try to avoid such scenarios and don’t get influenced by their habits. There are many other ways to socialize without shopping, such as arranging small parties at your home or at your friend’s house.
- Spending More on Their Advice
If you are spending more than you can afford on your friend’s advice, it will probably lead you in to financial trouble such as debt. Talk to your friends regarding your financial position and they will not compel you to spend on unnecessary things.
- Hanging Out with Them at Expensive Places
If you and your friends share common interests and hobbies, you may hang out with them at places that might be expensive such as the hottest new place, which will result in whipping out your wallet. Try to hang out in each other’s home and visit your place of temptation once a month.
- Taking Investment Decisions Based on What They Have Done
You follow your friend and imitate their portfolio because you think that your friend is financially savvy. If you have based your investment decisions on what your friends have done, it’s time to reconsider it as what has worked for your friend may not work for you because everyone should have their own financial plan.
Don’t get swayed by your friend’s bad financial habits and inspire them instead to follow good financial strategies.
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Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get an instant cash advance online when they need it. Kimmy has over 20+ years’ experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field.