How friends can affect your spending habits

If you are what you eat then I would argue that you also are who you hang out with.

In other words, the people you choose to spend time with do have an impact on the way you think and behave.

When it comes to your budget, there are many ways in which your friends and family can influence your spending habits. Their influence could be good or bad. Personally, I have some friends that make me more frugal and some that make me want to spend all my money and then some when we hang out.

Here are just a few ways types of friends that can influence your spending habits.

The Penny Pincher

When you are with this friend, he or she will try hard to validate why you owe more on the lunch bill because you ate one bite more of the shared appetizer than her.

The Penny Pincher never wants to help with expenses when you are in a group gathering, causing others to cover her portion, but she also always wants to be included in the plans.

Your choices for dealing with this person are to stop inviting her, which may not be an option if she’s a family member, or plan ahead to spend more than your fair share to cover what she won’t. You could also try some tough love by explaining why she needs to pitch in.

Who in your life is the Penny Pincher?

The Snob

This friend or family member loves to brag about expensive vacations or pricey clothing she bought for her kids whenever she has a willing audience.

You may feel insignificant and small when around her, or maybe even a little envious. She wants to shop at more expensive stores when you are together, causing you to part with more cash than you ordinarily would in order to avoid looking cheap.

You can either ignore her when she name drops in discussions, or pony up the cash when you are together – which could get expensive. Or you can choose a third option and confront her about how it makes you feel when she behaves this way. If she is truly your friend, she’ll try to behave when you are together.

PS. Grayson bought a Jetski because he used to be “the snob” type. He’s since changed.

The Shopper

Unlike the true snob, your friend who loves to shop influences your spending simply because she is so fun to shop with.

She likes to look at everything and will get you to part with your money by complimenting you on how cute you look in the new shirt you just tried on.

To prevent yourself from going broke, limit the amount of money you take with you and try to do other things for fun when you are together. Go to the park and take a walk or get together at each other’s homes and do a fun activity together instead, such as watching a movie.

The Freeloader

This friend is like the Penny Pincher on steroids. She always wants you to cover the bill and promises to pay you back later, but never does. If you loan her something you can count on it never being returned, so go ahead and say goodbye to that item the moment it leaves your hands.

She will take advantage of your friendship every time, so if you really want to stop it, the only way is to just say no.

If you’re the freeloader with your group of friends, it’s time to stop! If you have one of these, then you better learn how to say “no!”

If you want your spending habits to change, you have to take control of it and stop allowing those you are around dictate how much money you part with. Or, hang out with other people altogether. It’s your choice.

Can you think of other types of friends who many influence your spending habits?

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