Why You Should Talk About Money With Your Friends

Friendship and money are two very complicated topics that get even more complicated when we throw them together.

Sometimes it can be difficult to speak openly with your friends about how much you’re earning, and how much you can afford to spend on a night out. For example, what do you do if your friends out-earn you and always want to dine at expensive restaurants? How do you talk through income differences and find ways to spend time together in ways that won’t break the bank for anyone? And how do you make new friends who share your values around money, and who will support you and cheer you on as you work to achieve your financial goals?

This week, Jen Smith and Jill Sirianni, two friends who spend a lot of time talking about money, help us answer those questions. They are the co-hosts of the Frugal Friends Podcast, a personal finance show that teaches people how to identify their values around money, control their spending, and live a fulfilling life without financial guilt.

Listen in as they dive into the word “frugal” and what it means to them. (While it can have a negative connotation, like “penny-pinching” or “cheap,” it can also mean someone who spends smartly and prioritizes the things that bring them joy!) The women break down how we can all build good money habits, and how those habits coupled with amazing money-savvy friends can help hold us accountable day to day.

The pair also break down the importance of connecting our money with our values. “I am able to spend money on plane tickets, nice hotels, meals out, because that’s what I’ve planned for,” Jen says. “I’ve identified that they connect to some deeper values of community and beauty, and generosity. So, for me it’s not a deprivation in all categories, it’s the choosing where I’m gonna say ‘no’ so that I can say ‘yes’ abundantly.”

We also break down the best ways to have fun and bond with friends without spending too much money, and what to do if you have friends who earn more than you do and encourage you to spend more than you should. (We discuss how to approach those tough conversations if your friends are able to spend money on an international getaway or a lavish birthday weekend and you simply aren’t).

In mailbag, we discuss backdoor Roth IRAs, and how to draw down your RMDs safely. In Thrive, Jean dishes on how to get rid of all the stuff in your house you don’t need and make a little cash online.