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5 types of friends that could be costing you money

5 Types Of Friends That Could Actually Be Costing You A Lot Of Money

Could your friends be costing you cash? Tony Zimmer has some tips on how to identify pals who are draining your wallet, and how to get back in the green.

The Moocher
Do you have a friend who never seems to stop talking about not having enough money? Or who always seems to "forget" their wallet? Whether it's buying a round of drinks or the lunch bill, if you are always picking up the tab for your friend -- beware!

Fix – Count on Cash
Be disciplined about how much you spend when you go out -- a good way to stick to your plan is to only bring cash. Remember, small purchases here and there can really add up, and that's money you could be putting into savings. Make it clear to the Moocher that you are trying to be strict with your budget, that way you can skip the uncomfortable conversation about borrowing money.

The Under-Earner
This friend is always struggling with finances because they aren't making enough to make ends meet or they currently aren't working. Many times we feel the need to pick up the tab for the under-earning friend.

Fix – Find Frugal Fun
No matter how bad you might feel for your friend's situation, consider less pricey get-togethers. You may want to ask your friend over to your house for dinner, organize a potluck, or just meet for coffee instead of lunch. Look for free museum days, art fairs and other events you can take advantage of.

The Overspender
Unfortunately, I think a lot of us know someone who falls into this category. This friend always wants to go shopping, play the nicest golf course in town or go to expensive restaurants. Most of the time, these friends are paying for their lifestyle with credit cards, and that can really get you into financial trouble.

Fix – Back to Budget
If you can't afford it, don't buy it. It may sound simple, but it's not just kids who feel peer pressure! The average household has more than $15,000 in credit card debt. If you find yourself using your credit card to keep up with your overspending friend, you need to go back to your budget. If you don't have one, you need one.

The Penny Pincher
The Penny Pincher is always searching for the cheapest deal. You would think having this type of friend would be a good thing, but be careful. Spending time with a Penny Pincher can also lead you to buy things you don't need just because "it's a good deal."

Fix – Wait to Buy
Paying less for something because it's on sale feels great! But, don't fall into the trap. I advise my clients to impose a "48 hour rule," especially for big purchases. If you're tempted to buy something, wait 48 hours and see if you still want it. Often times, the impulse will pass. If it doesn't, check your budget to make sure it's something you can afford.

The One-Upper
This friend is always competing with you when it comes to spending. If you buy a new 50-inch TV, they buy a 60-inch. You take a beach vacation to Hawaii, they are going to Costa Rica.

Fix – Focus on your Finances
The problem with the one-upper is they live for now. I encourage my clients to see the big picture. So, focus on your own finances. Getting out of debt, building up your savings, investing in your retirement -- all of those things will make you the big winner in the long run.

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Join the discussion

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coopdabomb July 19 2014 at 10:25 AM

I have not seen a lib yet that could find their wallet when it comes time to pay.

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7 replies
Mike July 19 2014 at 6:14 AM

Don't forget about the friend who is an avid Huffington Post fan: you always wind up having to pay for their psych medications and hospitalizations.

Flag Reply +6 rate up
3 replies
fred July 19 2014 at 7:11 AM

Ain't it funny how people spend money they don't really have to buy things they don't really need to impress people they don't really like?

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1 reply
coopdabomb fred July 19 2014 at 10:26 AM

Welcome to a dem government...

Flag Reply +2 rate up
1 reply
reginatorw coopdabomb July 19 2014 at 10:53 AM

Immature amateur.....come back when you can actually bring intelligent discourse to a conversation.

We won't be waiting as apparently that is impossible for you to achieve.

Flag +1 rate up
Dan July 19 2014 at 11:23 AM

I had a friend who never carried cash and always had to borrow $5 from me when we went out anywhere claiming "I didn't have time to cash a check." Then I had to pester him for several days B4 he'd finally write me a check for the $5. What an A-hole! ♣

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1 reply
Steve Dan July 19 2014 at 9:26 PM

If he/she was a true friend, you wouldn't be complaining. In a real friend relationship, there is always some informal kind of reciprosity.

Hence, it is doubtful that the person you described was truely a friend of yours or visa-versa.

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tazgadon July 19 2014 at 4:27 PM

I'd rather pick up the tab for my True Under Earner Friend than be surrounded by a bunch of materialistic phonies who live in a superficial world of things...I love feeling and emotion I find nothing weak in that...as a matter of fact the number of people who rarely have lasting friendships are not comfortable with being down to earth and sharing their heart...that's a weakness of fear of rejection and getting hurt, being so afraid of getting hurt that they cheat themselves...Love still Rules for People Who Cherish What's Real and Valuable When It Comes to Having GOOD PEOPLE in Your Life.

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wal5we July 19 2014 at 1:57 PM

Describes every republicon I've ever known.

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nightmagic23103 July 19 2014 at 10:22 AM

A friend in need . . . .is a pest. (WC Fields . . . .I tink)

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2 replies
PHANTOM6838 nightmagic23103 July 19 2014 at 3:39 PM

'a friend in need is a friend indeed' then it finally comes down to a friend in need

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PHANTOM6838 nightmagic23103 July 19 2014 at 3:42 PM

W.C. Fields: 'I am free of all prejudice. I hate everyone equally.

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bambi4318.barbara July 19 2014 at 6:29 PM

This sounds more like my kids than my friends.

Flag Reply +1 rate up
realdealnyc July 19 2014 at 3:54 PM

This guy just revealed a LOT about himself -- and about "friendships" in 2014.

People now seem to base "friendships" on the type of job one holds, stock portfolios, where one lives, and what vehicle one drives, rather than any kind of connection or camraderie.

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tazgadon July 19 2014 at 3:08 PM

Beware of articles like this that feed the people don't need people ideology or only people who they deem or worthy...this whole issue can be resolved by knowing who you are and how to say no...know that people who have money can be just as much a liability to your state of affairs, economic, healthy wise, etc. etc. People are should choose their friends not by their ideal or the worlds ideal of whose worthy of our and friendship and whose not, stop adhering to articles like this and simply choose those things and people in life who give you peace and joy...money and status have absolutely nothing to do with that when it TRUTH in life.

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