If you've been trying to save money with no luck, you need to consider what's preventing you from reaching your goal. Maybe your expenses are more than you earn, or maybe you're not budgeting right. However, there might be another reason you're overspending. After taking a long hard look at your situation, consider whether your friends are making you overspend?
1. They Brag about Their Purchases
If you're friends with a few braggarts, you might overspend without realizing the root of your problem. Even if you resolve to only spend a certain amount of money, being in the company of people who constantly brag about what they have might spark a desire for the same lifestyle. If you're not careful, you might start desiring things you cannot afford.
2. Your Friends Say – You Only Live Once
We might only live once, but this doesn't suggest going overboard and spending money unnecessarily. And if you're friends with people who believe in spending money and having fun no matter the cost, you might adopt the same mentality and start spending your money frivolously. It's okay to have fun and enjoy the fruits of your labor, but you need to make wise decisions with your money. This includes budgeting, avoiding too much debt and saving a percentage of your earnings.
3. They Don't Understand Your Goals
Your financial goals may include building a rainy day fund, paying off credit cards or saving up to buy a house. And unfortunately, if your friends don't understand your goals, they may not understand your frugal ways. If they don't understand or respect your goals, they might encourage overspending.
4. You're Keeping up an Image
Do you spend because you think this is necessary to fit in with a particular group of people? If you're spending to keep up an image, you need to rethink the company you keep. If you think your friends will ditch you because you don't look or dress a certain way, it's time to find a new group of people.
5. You Care What Others Think
Additionally, if you're so preoccupied with the opinions of others, you may overspend to impress those in your circle. This doesn't get you anything, except debt and broke. You need to be honest with yourself and realize you don't have to spend money or wear certain clothes to be liked by others.
6. They're Constantly Putting Pressure on You
If you tell your friends you can't take a certain trip, go to a particular restaurant or buy clothes without them pressuring you or making you feel bad, you need to find people with the same financial outlook as yours. Not that you have to cut your current friends from your life completely, but you might limit contact to avoid digging a financial hole for yourself.
7. You Feel Bad after Shopping
If a shopping trip with your friends always ends with buyer's remorse or feeling guilty about your purchases, you need to stop shopping with these people and start shopping by yourself.
Our friends can influence us for the better or worse. If you come to the conclusion that your friends are making you overspend, take action and do something about the problem. Financial peer pressure is strong and it can leave you broke and in debt. How do your friends make you overspend?