4 Types of Relationships That Are Bad for Your Money
Good financial habits are necessary if you want to build wealth. However, it can be hard to stay on the wealth road if you spend time with the wrong crowd. If you’re trying to improve your financial situation, you’ll want to make sure you have the right people around you. If you’re not careful, your associates could influence you to make some very bad money decisions. Here are four types of relationships that are bad for your money.
1. The broke friend
Do you have a friend who always seems to be in a financial bind? When you ask about his day are you usually met with a heart-wrenching story of his never-ending financial woes? It’s not unusual to fall on hard times every now and then, but it can get annoying when you keep encountering that one friend who seems to be perpetually broke. It’s OK to help out, but if your friend is starting to make a habit of asking for money, it’s time to re-evaluate your friendship. Is he your friend because he genuinely likes and supports you, or is your friend merely looking for a handout?
2. The gold digger
Does your significant other often expect you to pay for everything? Don’t let love blind you to a possible gold digger (and yes, we know that person could be a man or a woman). If you seem to be the only one opening up your wallet, it’s a sign your partner may primarily be with you for financial support. Pay close attention to how your partner acts during times when you don’t have a lot of cash to spare. Does your partner become cold and distant or are you met with compassion and support?
3. The irresponsible family member
Watch out for the family member who is constantly asking to “borrow” money. If you decide to give some of your hard-earned cash, just know beforehand that you may never get it back. Also make sure that you can actually afford to give the money in the first place. It’s not selfish to take care of your own financial needs first; it’s smart. Our advice when it comes to lending money: don’t. However, if you feel that you must lend, make sure you have enough in savings to cover your own expenses.
4. The big-spending spouse
Being in a relationship with a shopaholic is not fun. Your days and nights will likely be filled with arguments about money, email alerts about overdrawn bank accounts, and plenty of tears. If your partner has poor financial management skills, you’ll need to nip this in the bud before things get out of control. A spendthrift spouse could put you in a tight spot in the event you were to make a significant financial purchase, such as a home. Organizations such as Shopaholics Anonymous and Debtors Anonymous are two good places for your partner to seek help.