Friends who are bad for your personal finances can stop you from reaching many financial goals. If you're a strong-minded person, you may feel that no one can get you off track – and maybe you're right. But friends can have a strong influence over us, and sometimes they impact how we spend our money. Here are seven types of friends who are bad for your personal finances.
1. Bragging Friends
Friends who are bad for your personal finances include those who constantly brag. If this person buys anything new, they make sure you know about it. And if you do anything or buy anything, this friend has to "one-up" you each time. These types of friends can be bad for your personal finances because they turn the friendship into a competition – to the point where you're constantly trying to buy and outdo each other. And unfortunately, this doesn't help your bank account.
2. Jealous Friends
These are friends who never want you to get ahead. It doesn't matter how hard you work, or how long you save your money to buy something. If you have something they don't have, the jealous friend makes comments or makes you feel uncomfortable with your decision. They might even talk you out of buying a new car, buying a house or taking a vacation – even though you can afford it.
3. The Shopaholic
This friend loves to shop and spend money, and they encourage you to do the same. If you have a shopaholic friend, you might want to leave your credit cards at home when heading to the mall. If you're trying to save or live within a budget, a shopaholic friend is the wrong person to have around when you're at a retail store.
4. Rich Friends
This friend can take a vacation, buy designer clothes and eat at the most expensive restaurants in the city. As much as you want to keep up, your income isn't enough. But rather than be upfront with your friend, you might work hard to keep pace with her lifestyle. This results in living beyond your means and increases your risk for debt.
5. The Pryer
This friend is always prying into your personal business. She'll ask questions, such as, <i>How much do you make? How much is your rent? How much did you spend on that?</i> Sure, you have a good relationship with this friend, but at the same time, what you pay and how much you earn is none of their business. Be careful with these friends. These friends might only have a curious mind, or they could be prying about your personal finances so they can borrow money.
6. Freeloader Friends
If you go to the movies or out to eat, this friend never has enough cash. These friends constantly ask for money, and because you feel bad you go into your pocket to cover their expense. But unfortunately, if you don't have money to give, a freeloader can leave you broke.
7. Negative Friends
When you set financial goals for yourself, you need to surround yourself with people who will be your cheerleaders. And unfortunately, a negative friend isn't this person. If you're looking to build your savings account, a negative friend may say, "You can't save that much money." And if you want to pay off your credit card debt, a negative friend will say, "Debt is a way of life, you're not going to pay off those balances." These people may not be purposely trying to discourage you, but that's exactly what they're doing.
Whether you're looking to save money or pay off debt, smart financial decisions have a positive effect on your personal finances. Therefore, surround yourself with people who will encourage and support you. What other type of friends should you avoid when trying to improve your finances?