It can be said that the whole month of February revolves based on love and friendship, touching on financial issues with your partner can sometimes take place very VERY late in the relationship, but with friends, it is often something that is never discussed. It doesn’t have to be this way. Our friends accompany us in difficult moments and in joys, talking about finances should not be a problem. In the best of cases we might even get something good out of doing it. I stand by that!
Why is it difficult or taboo to touch on financial issues?
The subject has always been taboo, and perhaps that is why many people prefer to ignore it completely in their personal life and end up in big financial trouble. In the end, not touching it with family or friends makes it easy to ignore. However, with the situation we are globally living through, and perhaps the increase in people who have had financial problems, it is an issue that is gradually being talked about more.
With the following tips, you can start talking about finances with friends.
Share Experiences
It is not about asking direct questions, because people may feel offended or even uncomfortable. It will also have a lot to do with how much trust there is in the relationship you have. If you’ve just met, it’s not generally a recommended topic. (My belief is that this has to do with the “power” we attach to money; no one wants to feel like they are risking vulnerability or being proven “weaker” in the finances power play.)
The best way to start addressing the subject is by talking about personal experiences, either with certain financial tools or institutions. This gives rise to the conversation with a group of friends, more people talking about their experiences or giving opinions and questions about what is being addressed. The best way to avoid discomfort is to touch on the subject without going into specific amounts, which can be very high or low for certain people.
Set Group Goals/Mutual Accountability Goals
Another way to talk about finances, and at the same time strengthen ties with friends, is to set goals together with them. The simplest option is to set savings goals to achieve a common goal or benefit, such as a vacation, a trip or as small as a meal or meeting. This worked really well with my work friends in 2019. We mutually encouraged each other to save up for a super frugal trip at the end of the year. It worked out well, everyone chipped in when necessary, and since the goal was to have the best trip while spending the least amount of money, everyone remained attentive throughout the year, researching any deals that could come up. I can’t remember the specific amount now, but I want to say the entire road trip ended up being a bit less than $250 per person.
The idea is to add the topic of finances to the dynamic with friends and keep each other motivated while creating a good habit, which is saving to meet goals. Technology can work in your favor when doing group dynamics to save. There are applications to monitor the amount that can be saved or it can be as basic as writing everything down on an excel sheet.
Seek Professional Advice
The main purpose of breaking down the taboo of talking about finances with friends can be easily fulfilled if you have a gradual approach into that, and your friends see you making an effort in your own life. If you want to deepen your knowledge and make better use of financial tools, it is always advisable to go to the experts.
Remember that all the advice that our friends and family can give us should always remain as suggestions and taken with a grain of salt. If they are not experts in the field of personal finance or financial advisory, their comments probably come from their own experience and knowledge base, therefore their particular situation may not apply to yours.
Leave a Reply