How to Handle Sticky Situations with Friends and Money

You may be great at being frugal on your own, but when friends and family are added to the equation, things might get a little trickier. Whether you are trying to maintain friends and a social life but don’t want to spend much money socially or you have to deal with the awkward situation of lending money to a friend – money and the people you love can work against each other. Here are some tips from Couple Money for handling some of these situations:

How to Tell Friends That You Need to Cut Back:

  • Set Up a Schedule: if you focus on the positives (the set times that you’ve allowed yourself to go out), you’ll feel better about the times you have to say “no.”
  • Take Up a Hobby: take up an affordable hobby, such as drawing or learning an instrument, so that you can devote your time to a creative outlet and have an excuse not to go out and spend money. Suggest that a friend can come over after you’ve finished practicing or doing your activity.
  • Communicate Clearly: be honest with your friends. If you feel embarrassed about your money situation, tell your friends about a financial goal you are working towards. For example, you can say that you’d love to go out, but you’re working toward a down payment on a house.

For some great advice about how to use peer pressure in your favor and advice about lending money to friends, be sure to check out Friends and Money – Advice on Handling Sticky Situations.