Staying on budget does not have to mean staying in all the time. But going out can often be a slippery slope — especially if you are doing so with friends who have different financial situations and spending habits. Your friend might suggest another round or two of drinks or grabbing dinner at a pricey restaurant, and the next thing you know, your bank account balance is not where you would like it to be.
How can you balance having a good time with friends and feeling good about your spending? Read on for some tips and tricks.
Make a budget before going out
“Setting aside a specific line item in your budget for parties, trips or weekend brunches lets you enjoy your social life without the stress of overspending,” said Money. By doing the math on the front end, you can know exactly how much you can afford to spend in a given month. This will also give you a clear way to track how much of that allotted amount you have already gone through at any point throughout the month, which is helpful to know prior to meeting up with friends.
Come up with lower-cost activities
“Meaningful experiences with your friends don’t have to be expensive,” said Ally. If you want to spend time with a friend and are nervous about shelling out, consider suggesting something free or fairly inexpensive — who knows, they may even breathe a sigh of relief for their own budget. Some easy ideas include going on a hike, checking out a free museum or outdoor concert or attending a local book club together.
Invite people over
Having people over is an easy way to get the crew together while skipping the bar tab or the restaurant bill. Maybe you can ask everyone to bring over a dish for a potluck, or you could even cook as a group. Perhaps someone brings over a bottle of wine, and you pull out a board game or put on a movie. The bonus of this approach is that everyone can stay as long as they (or you) would like.
Be open with your friends
Maybe you have been trying to dance around your financial reality because it feels embarrassing or like a potential buzzkill. But “discussing money openly with friends can help dismantle the shame around financial struggles and is a great way to explore affordable ways to spend time together,” said Ally. It also gives you a more honest way to say no to an invitation in the future, if you need to.
Spend on what matters to you most
“Look at money as ‘a tool to enhance your values and your experiences,’” as opposed to just a default way to socialize, said Jack Howard, the head of money wellness at Ally, to CNBC Make It. Evaluate what you really enjoy spending money on, versus when you are spending just to spend, and adjust your expenditures accordingly. “If costly activities like going out to dinner or traveling with friends are important to you, you may have to make cuts in other areas of your life in order to prioritize them,” said the outlet.
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