Do your friends influence your money decisions? You may be surprised at how much they really do. Your friends are not necessarily a bad influence, and you may be surprised at the decisions that you are making on a subconscious level because of your friends.
I have seen groups of friends that spend a great deal of time shopping together. If this is the way you spend time with your friends then your money decisions, the places that you shop and how much you spend may be directly influenced by your friends. If your friends are the type that love to go boating or skiing you may spend more money on things that go along with that.
Similarly if you are friends with people who spend their money carefully you will be influenced to do so as well. (I am not suggesting that you can’t be both frugal and love shopping or outdoor activities—I know that you can.) You may find that when you spend time together you naturally take a picnic lunch versus going out to eat. Or you may be bragging about how much you saved rather than how much you spent.
Ultimately though your financial decisions are yours to make. It is important to take time to make conscious well thought out ones. If you stop to think before you make a purchase and evaluate why you are making the purchase, you should be able to do this quite effectively. In fact one of the best ways to manage your money is to be very conscious about where it goes and the motivations that cause you to utilize it that way.
Although you may not talk with your friends directly about your financial situation, you can form a support group encouraging each other to be wise with your money. I have had friends that have shown me easy ways to save money, through simple observation. Similarly I hope that others can learn through my habits and decisions. You can also understand if your friends do not seem to have the money to do certain activities at different times. If you know they are struggling financially you may want to suggest activities that you can do together that do not cost much.
Related Articles:
Saying No to Family and Friends
How to Handle Your Non-Frugal Friends (I)
How to Handle Your Non-Frugal Friends (II)