5 Types of Friends Who Are Not Good for Your Finances

Do you have any friends who are negatively affecting your finances or spending habits? It's time to identify such financial frenemies and lay down some ground rules to neutralize their effect on your finances. Take a closer look at your spending patterns when you are with your friends and watch out which friends are costing you money. It's important to protect yourself as well as your friendship!

Here are 5 types of friends who are not good for your finances:

1. The Enabler The one who pushes you to spend more and reminds you that you deserve it. Going out for shopping with an enabler can be very dangerous if you are on a limited budget. Leave your cards at home and carry only cash to avoid overspending even if your enabling friend entices you.

   

2. The Borrower The one who borrows money and forgets to pay it back. There are borrowers who actually need money for a financial emergency while there might be some who are not short of cash, just want someone else to pay their bills. Don't loan them money if they don't agree to the repayment plan.

   

3. The Show-Off The one who wants you to feel jealous of their expensive clothes, luxury cars and impulse shopping. Trying to keep up with their lavish lifestyle will affect your finances. Set your own financial goals and focus on them instead of comparing your financial situation with this show-off friend.

   

4. The Miser The one who makes budget and focuses only on saving money. They tend to spend money on cheap clothes or used car that becomes more expensive in the long run. Talk to them and make them understand that instead of spending on cheap items, it's worth spending money on quality items.

5. The Pressurizer The one who puts pressure on you to spend on group activities and night outs. When you are on a tight budget and forced to spend on unnecessary things, it can put a serious dent in your wallet. Talk to this friend and let them know that you are on a budget and focusing on saving money.