Open and honest communication can improve your life in so many ways.
Most important points
- An April 2022 poll found that 56% of adults surveyed believe that talking about money with others is “taboo”.
- Your friends can be a source of financial advice and cheerleading.
- They can also be a sympathetic ear to vent about financial errors and mishaps.
Talking openly about money can be uncomfortable or even scary, even now in the year 2022. A survey of 2,000 adults conducted by Questis and OnePoll earlier this year found that 56% of those surveyed believed that talking about money with others was “taboo”. ” used to be. In addition, 58% admitted to faking their money situation on social media to appear more financially stable. Yuck!
I’m a big believer in open communication, and in the course of getting better with money and paying off debt this year, I’ve also become a believer in talking about personal finances with the important people in your life, be it family is or friends. Read on to find out why it pays to get over your money woes and share your financial gains and losses.
1. You can get or give free advice!
If money is a topic you feel more comfortable talking about, seek money advice from a knowledgeable friend. A quick warning here: unless you’re lucky enough to be friends with financial professionals, it’s best to take all free financial advice with a grain of salt. Social media is full of people who have a free platform, and as a result there is some really awful money advice out there. So if your friends advise you to apply for a certain credit card or use a certain brokerage firm, it’s a good idea to do some research on your own first to see if that product is really right for you. In this respect, consultation with a financial advisor is also an excellent idea.
That said, if you’re shopping for a new credit card and you know you’ll spend a lot of your spending at the grocery store, it’s a smart move to ask around your circle of friends and see if anyone has a great recommendation for one. card that gives money back for shopping expenses. It’s nice to get a real user’s opinion from someone you know and trust. Likewise, if you’ve never invested before, you probably have a few questions about how 401(k)s and IRAs work, and your investment-savvy friend might be willing to give you a brief overview.
Being more open about money matters may also make you the person others turn to. Let me give you an example: a few months ago, a good friend had problems with her banking situation and had to pay off a pile of accumulated overdrafts. Knowing that I work in personal finance content, she asked me for information about personal loans and how to get one. I was happy to point her to helpful resources. It feels good to help a friend.
2. You can find allies
Just as it’s important to have financially knowledgeable friends in your life, it can also be great to have some money cheerleaders. If you feel comfortable talking about money, you can share your financial victories and maybe get some encouragement to chase your money dreams. No one wants to be nagged about money, but if you can be honest with your friends about your intention to spend less on dining out or shopping for clothes, they may be willing to help you with that goal (or at least not actively work against you). ). If you normally go shopping and then have lunch on a single Saturday, you can all work together to come up with a cheaper alternative way to spend time together. And unless you associate exclusively with the wealthy, your friends will also likely appreciate encouragement to save money at a time when inflation is so high and the cost of daily living is skyrocketing.
3. You can ventilate in a safe environment
Again, unless all of your friends are wealthy (and sometimes they are!), chances are they’ve experienced money frustrations from time to time. When you apply for and get rejected for a credit card that you really wanted, or when you’re in a car accident and have to cough up your car insurance deductible to get your car fixed, it’s nice to have people to talk to about your heart can vent. Sometimes you have a bad financial day (or week, or month…), and a listening ear can make all the difference, even if that friend cannot help you concretely.
Let’s break the taboo on talking about money. Being open and honest with your friends about your financial situation can help you improve, help them improve, and can even make your friendships stronger. For all these reasons and more, it can be very good for your finances.
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