Money doesn’t have to be a taboo subject! We believe it’s time to start talking more openly about money and a great place to start is with a money buddy.
Your money buddy is just like your gym buddy, who makes sure you go to gym regularly so you can get fit and improve your health – and tells you to get back on track if you fall off the rails and stop going! So, why not get a money buddy?
What is a money buddy?
Your go-to friend for money matters who knows your true financial state including your debts, investments, goals, dreams, spending and saving habits. Your money buddy encourages you to live within your means, not take on debt you cannot afford and save so you can build wealth for you and your family.
Your money buddy is also someone you can share your money ideas with. For example, you can share ideas for a side hustle or on how to save on budget items. And why not share your thoughts on retirement – what you plan to do, when and how you can achieve it? You and your money buddy can also tackle some money saving projects together, such as researching bank accounts to find out which account has the lowest bank charges! Or you could take the Truth About Money’s online financial education course together.
What are the benefits of having a money buddy?
You have someone who holds you accountable. So, when you set a goal of saving R500 a month, your money buddy checks in with you to find out if you are saving or if you need some tips or encouragement to keep going. When you have someone, you are accountable to, you are more likely to achieve your goals.
Your money buddy is also a support when you have money worries. If you are finding it hard to balance your budget, worried about making ends meet or a looming retrenchment, your money buddy is there to listen and support you emotionally.
Having a money buddy also makes you more responsible when it comes to debt and spending. If your money buddy knows you are close to maxing out all your cards, they will tell you to stop when you want to spend more or open a new account!
What should you look for in a money buddy?
- Honesty: You must be able to share your money stories – good and bad – with each other.
- Accountability: You must hold each other accountable for how you manage your money and achieve, or don’t achieve, your money goals.
- Encouragement: Your money buddy encourages you to change bad money habits and holds your hand when things don’t go as you expect (while subtly pointing out why, so you don’t make the mistake again!)
- Similar money values and financial footing: You need a money buddy who shares your values: values such as “save when you can” and “live within your means”. You also need a money buddy who is on a similar financial footing. Although you don’t have to earn the same amount, if your financial situation is very different, your money journeys may just be too different!
- Non-judgmental attitude: Your money buddy needs to point out when a decision might be bad or you might be overspending, but not judge you as a terrible person for it!
- Availability: Just like regular gym-going is the smartest way to get fit, to get money fit and the most out of your money buddy relationship, you need to check in regularly on money matters.
- Confidentiality: You must agree to keep each other’s information private – no one wants their money life spread all over Twitter or at the weekend braai!
Got someone in mind?
Chat to your friend, set a few ground rules that you both agree on and start talking to each other about money and holding each other accountable! Be prepared to give and take – it’s a two-way street; you need to give and receive encouragement.
Take some time to get to know each other as money buddies. For example, you can start by sharing three money goals and how you can achieve them and agree on a date in the next four weeks where you check in with each other to see how you are doing.
Become better money managers
Having a money buddy is one of the best ways you can become better at managing our money. Make a few calls and find your money buddy today!