Monday, April 2, 2018
9 Financially Toxic People to Avoid
They say you are what you eat. They also say choose the company you keep wisely. We all know how hanging out with troublemakers can get us in trouble. Are we as familiar with the damage a financially toxic person can do to us? They are often harder to spot when we are younger, probably because we might be one of them. As you get older they become clear as day. Surrounding yourself with financially toxic people can lead you down the wrong road. It will hurt your emotions and most definitely your bank account. Today, I am going to describe 9 different types of financially toxic people. Don’t be afraid to ease them out of your life.
1) The Animal
We all had our heyday in our early twenties. This person didn’t get the memo to slow down when you leave post-secondary. While we used to be able to buy a mickey of rum with a bottle of Coke and that would be enough, now it requires a whole night out with round after round of pricey cocktails. I realized around the age of 25 that my habit of going out 5 nights a week was not only unhealthy but costing me a fortune. It is hard to go out anywhere and spend less than $50. If you do that 3 nights a week, you are spending $600 a month on a useless activity. While they might not mind spending all their free money on intoxicants, you definitely should.
2) The Mooch
There comes an age where asking someone for something should make you sick. Not for the mooch. This person has no problem weaseling free anything out of everyone. The quick bathroom break when the cheque comes. The convenient forgetting of their wallet when you go out for dinner. The showing up empty-handed at the potluck. Mooching anything is a sign of bad character and should be avoided at all costs. If it means going Dutch, then so be it.
3) The Complainer
We all complain and sometimes that can be healthy. Seeing something is wrong and addressing it is necessary to growth. Being a serial complainer, however, is not a good thing. They always have something bad to say and never do anything about it. They often moan about their own financial problems and yet you catch them willingly doing things that are financially harmful. The complainer will zap your energy and might even make you into a complainer. You must stay clear of these people because falling into the complainer zone will kill ambition and hurt your wallet over time.
4) The Sloth
There is a reason sloth is one of the 7 deadly sins. Laziness is completely undesirable. The sad part is, laziness rubs off on others too. You could find yourself spending all your free time being completely unproductive just because all the people around you are. This is especially true in relationships. We work for a large portion of our lives, so our free time needs to be productive as well. This doesn’t mean that we don’t get a lazy day here and there, but we should do more than just lay around playing video games. There is also no reason to not work a full work week. Unless you are in school or are not physically/mentally able to, you should work as much as possible. You will be financially hurt if you do not do so. Fake sick notes only hurt yourself.
5) The Princess or Prince
Money is no object to the prince or princess. This is probably because they haven’t had to work for it most of their life. Every outing is a trendy spot that dings the wallet hard. There are constant vacations and getaways that leave you wondering how the math works out. While some flock to people like this, do so at your own peril. You might start treating money like its meaningless or even worse, try to keep up with their lifestyles. Often the prince has a deep dark secret of massive debt. A good time with friends shouldn’t require a maxed-out credit card.
6) Mr. Oblivious
This fine specimen has no clue why they are in such financial turmoil. They will often say silly things like, “Money is meaningless,” or “None of it matters anyway.” They use these sayings as a coverup for their lack of diligence to their own situation. Where you could falter is by putting too much heart into your relationship with Mr. Oblivious. They do not care about their own situation, so you shouldn’t either. It will lead to mass frustration and often a hurt bank account too.
7) The Know it All
This person is all about giving you advice even if you didn’t ask for it. They have no special qualifications or education, but they seem to know all there is to know about finance. Much of the bad information I encounter has been given to my clients from someone they know. This can lead to bad decisions that cost you money. Remember, don’t take advice from people who are not professionals and always look at the source. Often people on shaky ground are quick to tell you what you should be doing. Taking this advice can be a costly mistake.
8) The Daydreamer
All ideas, no gumption. The daydreamer will always try to get you on board with whatever they are doing that moment. They have grand plans of being successful or striking it out on their own, yet nothing seems to come of it ever. Often times, these grand ideas come at a cost. They almost always cost you your time. The daydreamer doesn’t think things through and you need to make sure you don’t get caught up in their dream. Hitching a ride on that horse will only cause emotional and financial heartache.
9) The Nosey Ned
This person is always up in your business. They want to know what you are doing not because they want to emulate or help you, but because they like to gossip. Your personal financial situation is your own business and you should only let people in that you trust and know care about you. The nosey friend is only out for information, often to either compare themselves to you or criticize what you are doing. Remember, unless someone is there to genuinely help you, it is none of their business what you are doing. Gossiping about money is gross and you should run from anyone who does this frequently.
All the great financial minds like Warren Buffett, Dave Ramsey, and Brian Tracey believe you should always surround yourself with people that you believe to be better than yourself. If you do this, you will strive to become more like them. Surrounding yourself with negative or unsuccessful people will lead you to naturally gravitate in their direction and that is troublesome. Remember that your financial situation is key to your success and the state of it should depend on you and your actions, no one else’s.
“The key is to keep company only with people who uplift you, whose presence calls forth your best.” – Epictetus
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