We often rely on our friends for emotional support. However, when it comes money matters and friendship, combining the two might not be the best thing to do. Yes. Financial experts and also psychologists often advise against the idea.
If you feel your friend or family is in genuine need, you could lend the money. But also consider the borrower's ability to repay. If they are working, find out how much they earn and what their other financial commitments are. Also try to find out whether the borrower is responsible about finances.
found that individuals with lower levels of household income faced an increased risk of depression compared to those with higher levels of household income [34].
Also known as financial strain, it is a belief that there is never enough money available to pay bills or provide the necessities of life. With the exception of pathological gambling and compulsive buying, psychology and the mental health fields have largely neglected dysfunctional money disorders.
Asking for money is, ultimately, one of those things you should try to avoid, says Klontz. Burrowing money for things like rent are high risk situations for you friendship, because recurring expenses may leave open the possibility that you'll come back for more. Ask for these payments only if it's a one-off situation.
“Our study has shown that the people who fared the best were the people who leaned into relationships with family, with friends and with community.” The study found that close relationships, more than money or fame, are what keep people happy throughout their lives.
A good friend will realise that there are certain moments where you need to 'be by yourself' & get a fix on certain matters without the interference or forced counsel of someone else. A good friend respects your needs & doesn't attempt to rescue you when no rescuing is in fact needed.
Don't Lend More Than You Can Afford
This should be obvious, but it's worth repeating. Lending more money than you can realistically afford can only lead to problems if the person to whom you lent the money doesn't repay it punctually or you have a harder time keeping up with your expenses as a result.
Friendships between rich and poor kids are uncommon. Unfortunately, the researchers also found that communities where rich and poor people have ample opportunities to interact are the exceptions, rather than the rule. It's much more common for social networks to be segregated by income.
DON'T EXPLAIN OR MAKE EXCUSES.
Doing so only opens the door to a discussion and prompts your friend or family member to try to overcome your objections. Say, “I'm sorry, but I can't give you a loan.” When the person asks, “Why not?” just repeat your statement. Eventually, your friend or family member will stop asking.
Those who suffer from financial anxiety are continually worrying about bills and might be afraid to look at their bank account or cope with anything to do with personal finances.
On this page you'll find 225 synonyms, antonyms, and words related to moneyless, such as: bankrupt, exhausted, impoverished, indigent, insolvent, and needy.
Just keep in mind: You should never give a loan to a loved one. Instead, mentally earmark that money as a gift. Maybe your friend pays you back, but be prepared to never see that money again to avoid letting it have an impact your relationship. When a friend is going through a tough time, volunteer.
If you've made the invitation, and it's a sit-down restaurant rather than a fast food-type joint, it's okay to offer to pay sometimes too. It's not patronizing unless you offer every time and assume they'll never be able to pay their share.
“I'm sorry you're going through this. Is there anything you'd like to talk about, or do together?” “In the past, when you were in a similar emotional spot, what was helpful in feeling better?” "How can I best support you today or any other time in the near future?"
Toxic money habits are more about bad financial behavior rather than your literal money. Toxic habits come in many forms, but the most common are: lying about how much money you have, shopping away your feelings via retail therapy, and relying on credit cards rather than cash in hand.
Money dysmorphia can also mean feeling insecure and unstable despite having plenty of money in savings, a padded emergency fund, and being in a really stable financial position. You might have everything you're supposed to have and still feel insecure about your money. That's money dysmorphia.
You could be at risk of developing anxiety or depression. Some people use drugs or alcohol to help them cope. Some have thoughts of self-harm or suicide. People from all walks of life experience problems with money.