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How to talk to your friends about money
From asking a mate to pay back the cash you lent them to opening up about salaries Javier Zayas PhotographyGetty Images
We’ve all been in situations where someone doesn’t fancy paying their share of the bar tab, or maybe you’re the one who finds their friends splashing out carelessly, and you feel left behind? Whatever the money-related issue, dealing with it is rarely fun. But it’s not just awkward: not talking about money with mates could be costing you an extra £23 a month according to a survey by vouchercodes.co.uk – that’s £276 per year – all because we don’t want to seem confrontational or impolite. To help avert friendship bust-ups over money, finance editor Kalpana Fitzpatrick takes a look at some tricky scenarios when it comes to talking to friends about money.
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If you’ve been saving lately, you may have noticed that your hard-earned cash is earning little or no interest, meaning your money is not growing.
But here’s the thing: as the cost of living increases, your money needs to grow with it. Latest figures show that inflation (the cost of living) is now at 0.7%, and to keep up with that, your money has to grow at the same rate, otherwise it is actually losing value. The solution? Investing.
With research from Nutmeg showing 43% of 25-34 year olds feel financially better off now than a year ago, now couldn’t be a better time to dip your toes into investing and make your money work hard. And according to investment firm Wealthify, women in particular seem to be open to investing with 60% of women savers aged 18 to 54 considering investing, although 84% of young people say they lack confidence and are not sure to start.
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Be honest now, on payday do you a) complete the purchases on the many online shopping baskets you’ve been adding to all month or b) move a chunk of your salary across to a savings account and update your colour-coded spreadsheet straight away?
Of course, it’s your money, and whatever works for you is absolutely fine, but if you’re sitting in camp ‘a’ but wishing you could be a little more ‘b’, there are steps you can take to get there and run a successful monthly budget.
Before you get to the budgeting, though, and if you’re new to managing your money in a more considered way, you need to pause and take stock.
How much should you save in a month?
Experts break it down
Let’s face it, saving money isn’t exactly the
most fun thing ever when chosen over, say, a Glossier haul, but getting into the habit can eventually bring us financial wellness and freedom that’s ultimately just as satisfying as a new tube of Boy Brow.
But getting to that point requires an understanding of why we’re saving, and often times, it’s motivated by a stressful situation rather than being a part of our everyday lives.
“I love saving but I think the root cause of that is fear. I spent most of last year worrying about money as I was on furlough on my two days a week retail job (around £75 a week). So, when I finally got a full-time job in November I went full throttle, making spreadsheets, setting up direct debits to save, and now I panic I m really far behind on saving compared to most of my peers who ve been working full time for two+ years,” says Kirstie.