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.