Based solely on this headline, you may be wondering: What on earth is a money buddy? Let us clarify that, no, a money buddy is not someone who helps you spend money. Quite the contrary! A money buddy is a person capable of helping you manage your money properly.
Choosing a Money Buddy
The person you choose should have a good understanding of finances, but not be experiencing the same issues. A good example is overspending using a credit card. If this is your weakness, you do not want a money buddy with the same issue.
A money buddy should be truthful, direct, and capable of having a candid conversation regarding finances. You must be able to talk about your current circumstances, your future goals, your spending habits, what you need to change, the reasons why, and the impact of what is happening in your life or your financial situation. A money buddy can be a friend, business associate, relative or acquaintance.
The Benefits of a Money Buddy
There are numerous psychological and financial benefits of having a money buddy. Financial issues are often kept secret. A money buddy gives you someone to talk with so you can alleviate the angst and tension. It is always helpful to have a shoulder to cry on and an ear to listen.
You can find inexpensive hobbies to share with a money buddy. It is much easier and a lot more fun to have someone to share a hobby with than attempting to find something alone – especially if it’s a low-budget activity you’re not used to. This is also a good way to replace something you are doing that is expensive and you cannot really afford.
For example, if part of your plan to save money is to cancel your monthly gym membership, you can make a pact with your money buddy to work out for free together (i.e. go for jogs, hikes, walks, or try out new online workout videos together).
One of the best motivational tools is accountability. When you set goals, you need someone to remind you of your intended path. They will let you know when you are going off course. You and your money buddy can keep an eye on each other to help ensure success.
Positive reinforcement will help both of you reach your goals. Your money buddy will cheer you on every time you make a good decision. It can be difficult to change your spending habits. Encouragement and motivation make this much easier. A good money buddy will even make the hardest of choices manageable.
How to Use a Money Buddy
Looking for bargains can be a lot of fun with a money buddy for any significant purchase. This includes a new car, a hot water heater, a refrigerator, etc. It is much easier to find a good bargain with four eyes searching as opposed to just two.
If your and your money buddy work near each other or at the same place, you can save a lot of money by carpooling. By taking turns driving, you will both save money on vehicle wear and tear, the cost of maintenance and gas.
A money buddy is the perfect person to share a membership for a shopping club. You can divide the cost to lower the annual membership fee by half. You can also split the cost for the jumbo packs with your money partner for an additional savings.
Eating at home with your money buddy eliminates the cost of eating at a restaurant while fulfilling the need for social interaction. Replacing just one meal per week with a home cooked meal can save you a lot of money in the long run. You can even share in the meal preparation and clean up together.
Larger possessions and items can easily be shared, such as a trailer, snowblower or lawnmower. You and your money buddy can save some cash by sharing these types of items provided you live fairly close together.
Celebrating victories is a wonderful experience when you have someone who understands how hard you have worked. A money buddy will be happy you have succeeded and ready to share in all of your triumphs.