Do Your Friends Make You Poor?

An insightful post From investing lessons that i came across that i thought i would share
In my view the answer is both yes and no.

Yes – if you are insecure in yourself and seek others approval or companionship to fit in. Well – that is an extreme situation but it does happen. I have fallen in that trap where I have spent more money than I planned because of social pressure or obligation.

If you are spending to buy friends – then there is a problem. Friendship is mutual relationship and is usually a zero sum game – financially speaking. If you end up paying for most expenses at social gathering and are pressured to spend more than you feel obliged to – you need to reexamine your social context. Friends’ help you succeed in life – not drag you down in debt.

No – because eventually you are responsible for your financial well being. You choose your friends, your lifestyle and your financial well being. No one is making you poor but your perspective on life and your choices. If you are still caught in the blame game – stop. You are in charge of your life and there is more than enough good advise available to get you going on the right financial path.

Friends are an integral part of social existence so enjoy their company but don’t let them dictate your financial future or be used as an excuse for financial excess.