7 Types Of People Who Can Drag Your Money Down

Financially Toxic People To Avoid

We love our friends and family, but some of them can be a hazard to our financial health. Have you ever taken the time to consider the impact these people have on your finances? It's possible that you might not have noticed the negative impact people in your life have on your wallet.

To help yourself, you might need to have some tough conversations with these people. You can also use your wits to deal with these assaults on your growing wealth. Nonetheless, no one ever said that becoming wealthy was easy! Take note of the types of people who might be dragging your finances down and find out how to deal with them. Read on.

1The Struggling Businessman Or Woman

The struggling businessperson is full of great ideas that seem worthy of a small investment. Unfortunately, having great ideas and executing them are different skills. Avoid investing money that you're unlikely to see again. Let the future Donald Trump know that you're uncomfortable investing in a business that isn't even off the ground yet.

2The Party Person

TThe partier barely needs an excuse to celebrate. Cleaning out the closet is a good enough reason to head out to town and drag you along for the ride. What you can do is show up for the celebration.

But keep your expenditure limited to a soft drink. Most places will provide free refills. Another alternative is to say, "Thanks, but no thanks."

3The Charity Case

This person is constantly collecting money for worthy causes. He's climbing Mount Everest to save the antelope and needs $1 for every vertical foot of ascent. Do you have money for the cause now?

If you don't, assist them with your time. You can also let them know that you can't contribute to every cause. Support charities that are close to your own heart and decline the rest.

4The Fancy Gift Giver

Most of us exchange presents of a moderate value with our friends and family. This person goes overboard and spends way too much money. By way of guilt, you're forced to reciprocate.

This could blow your gift-giving budget. The solution is to suggest a dollar amount limit. Let them know you're uncomfortable with extravagant gifts.

5The Encouraging Friend

Have you ever been torn between the option of spending a lot of money on an item and keeping the money in your bank account? The encourager always seems to talk you into buying that item you want but don't need. All the while, they think that they're doing you a big favor. One thing you can do about this is to keep your shopping dilemmas to yourself.

6The Wealthy Friend

Your budget might call for a movie rental and a frozen pizza. But the wealthy friend doesn't want any part of the frugality. She likes to go to the fancy wine bar and eat the expensive sushi that runs $200 per pound.

It's embarrassing to say "no" all the time. The solution is to be as honest as you can be. Let your friend know that her taste is simply out of your budget.

7The Moocher Friend

This person eats the food out of your refrigerator, borrows your tools, and never brings them back. The moocher friend also always needs $5 for a variety of reasons. The solution to having this kind of friend to deal with is just to say no.

The key to dealing with all of these people above is communication. In every instance, you can choose to let the person know that you either don't have the money to spend or that you'd prefer to keep your money in your bank account. The conversation might be awkward, but the awkwardness will be over quickly.

Avoid allowing your friends and family to drag down your finances. Stick up for yourself. Be in charge of your money again.

About Author

Jackie Wing

Jackie Wing is an Alaska native, who enjoys snowboarding more than is probably socially acceptable. She lives in Anchorage with her two dogs Reese and Peanut, or as she likes to call them "Thing 1" and "Thing 2.".