The Types of Friends Who Can Ruin Your Finances

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This is a guest post from Kyle Kam from


Some friends – without meaning to – can ruin your finances. The fact is, while you are great at making friends, sometimes, the people you have in your life might be hurting your finances. Sometimes, it’s the way they think about money, or the way they treat you when it comes to your finances.

Here are a few types of friends who can ruin your finances.

The Enabler

This is the friend who might have selective hearing – as in they hear “tell me to spend” when you say “I don’t have the cash now.” When you’re working hard to stop yourself from spending, you’ll hear your friend say “you can splurge every once in a while, you know.”

It’s a guilt trip, and a trap to make you spend more than you should.

The fix: This friend isn’t completely wrong, but there’s a difference between a small splurge when you can afford it, and when you can’t. One way you can deal with this is telling your friend that you have a set amount of “spoil-me” money, and won’t go beyond that.

The One-Upper

You probably might know someone that seems nice, but he always has to have more expensive personal items than everyone else. This is the kind of person who gets a new phone on release day, and the latest accessories to go with it.

While it’s great that he can afford it, the problem is that he has a tendency to brag it. He also unconsciously makes you feel bad that you can’t afford it now.

The fix:  Tell your friend that you’re not planning to replace the still-dependable item that you have now, but you will when it feels right, and you’ve got the money for it.

The Pryer

Not everybody is comfortable with revealing how much they make, or how much something cost them. This friend will constantly pester you for the price of that one expensive item that you own just because he is curious.

This person will also make it a point to either point blank ask you, or figure out how much you make, and compare your lifestyle to that amount.

The fix: While you don’t want to lie to your friend, you’d also rather not tell direct figures. Give them an estimated figure, and offer to help them find the item’s price online.

The Baller

This person is the one whose social network feeds are always on fire because of the weekend trip they took, or the latest trendy purchase that they made. This is the friend you’ve seen hit up the new club that just opened and post photos.

Behind that perfection could lay extreme credit card debt, or worse – and this friend might mistake you for someone who should keep up with them, even if it means shouldering some kind of debt.

The fix: Your friend might need a reality check, and you can provide it if you choose to. Know your spending limits when going out, and make sure that they know the budget you’re working with.

In the end, these friends will only ruin your finances if you let them. It might be time to reevaluate if you feel that the friendship is more about the money than the company. You might end up being the voice of reason that they finally listen to, allowing you to keep them as friends, and for them to start keeping a better eye on the way that they spend.

About the Author:

Kyle Kam is a Digital Marketing Specialist of, a financial comparison website aiming to help Filipinos save money through diligent comparisons of financial products.


About the blogger

Louis Delos Angeles is a Certified Public Accountant, blogger behind Investing in Philippines, and author of Investing in Stocks: Preparing for the future small amount at a time. Check him out in Google+ Learn more about Louis and his financial freedom advocacy here.

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