How To Set Boundaries When You’re on a Budget
Many individuals are familiar with this common scenario when dining out in a group. You order a less-expensive meal, like a salad or bowl of soup, and have a glass of water. Meanwhile, other diners at the table are ordering more expensive dishes, appetizers, several drinks and maybe even dessert. When the check comes, the majority of diners want to split the bill.
Is this fair to those at the table who ordered less or more affordable items to save money? What should a diner do when faced with potentially splitting the bill in a situation like this?
Find Out: 16 Tips To Live Well on a Low Salary, According to Dave Ramsey
Try This: Owe Money to the IRS? Most People Don’t Realize They Should Do This One Thing
“Setting financial boundaries can be important for all types of relationships in your life,” said Carter Seuthe, CEO of Credit Summit. “You might need to set boundaries with coworkers over how much you can pitch in for a coworker’s birthday party or gift, for instance, or with family over an expensive vacation, or even with your spouse over spending limits on gifts for holidays or birthdays.”
Here are some suggestions for dealing with these different scenarios.
Start With Having a Solid Budget in Mind
“My top advice would be to just have a solid budget that can let you know what your boundaries are,” said Seuthe. “This is often the first step — it’s hard to create boundaries with others if you don’t know how much you can afford to spend on a trip or a gift.”
After this, he says it’s just a matter of learning to speak up and follow through.
David Kemmerer, CEO of CoinLedger suggests the same.
“Setting boundaries can start with being more intentional with what invitations you accept,” he said. “For example, if a friend asks you to go to a sports game with them where you would have to buy your own ticket, and what they are suggesting is out of your price range, you don’t have to accept.”
He continued, “You could explain to them that the seat is out of your budget, suggesting a less expensive seat, you could suggest an alternative activity for you both to do, or you could simply decline the invitation. Don’t be afraid to be honest about your budget — people won’t know how to respect it if they don’t know that it exists in the way it does.”
Read Next: I’m a Self-Made Millionaire: Here’s My 4-Step Payday Routine
Be Honest With Your Dining Companions
If you are on a tight budget where every dollar counts, etiquette expert Rosalinda Oropeza Randall recommends speaking up before everyone places their order.
While you don’t have to disclose the full extent of your financial woes to everyone, you can suggest a few options for how to split the check. Consider carrying cash, including small bills so you can quickly add up your portion. Add a few extra dollars to show others you are being fair in what you owe and to help cover the tip.
Friends aware of your spending preferences are likely to respect them moving forward and will be understanding of your needs.
Request a Separate Check
As soon as the server takes your order, request a separate check. This might be the most beneficial action you can take to ensure you only pay for what you ordered and the server has an easier time checking out your order.
If you are in a group dining situation where a check is being split up several different ways, Oropeza Randall said it will take your server much more time to complete the checkout process. This may take time away from the server’s ability to assist other tables and even impact the server’s overall tip.
Offer To Venmo Your Payment
Some group dining settings may have a member of the group who is using the payment app Venmo to pay the bill. If possible, offer to Venmo what you owe to your friend. Make sure to pay them back in a timely manner.
Explore Other Dining Out Options
If you are regularly invited to expensive dinner outings and do not have the discretionary funds for it, there are a few tricks to getting around this financial dilemma beyond declining the invitation.
Instead of having dinner, Oropeza Randall said you can suggest meeting for breakfast, lunch or maybe just dessert together. Or, you can try a happy hour or coffee outing. This helps save money without sacrificing your friendship or relationship. Plus, it’s a nice way to mix up the meals from always going out to dinner.
Set Up Multiple Bank Accounts
According to Joseph Eck, certified financial planner and founder of Stage Ready Financial Planning, a great way to set up boundaries in budgeting is by setting up multiple bank accounts named for different purposes as virtual envelopes and automating savings to each on a monthly basis from a primary checking account.
“Simplistic example: on the 1st of the month, a paycheck is deposited to a primary checking account. On the 3rd of the month, bills are auto-payed from the checking account,” he explained. “On the 5th of the month, the checking account auto transfers $200 to a bank account labeled emergency fund, $100 to a bank account labeled pet expenses, $100 to a bank account labeled holiday gifts, etc.”
He says that when those expenses come up in the future, the money is already there in a dedicated account for spending.
“Each month, there is a dedicated amount of money for each sub category in your budget. When the money’s gone, it’s time to wait until next month.”
Heather Taylor contributed to the reporting for this article.
More From GOBankingRates
I Earn Over $30K a Week in Semi-Passive Income on Amazon - Here's How
This is One of the Best Ways to Boost Your Retirement Savings in 2024
Here's How to Add $200 to Your Wallet -- Just For Banking Like You Normally Would
This article originally appeared on GOBankingRates.com: How To Set Boundaries When You’re on a Budget
