Going out to dinner or a bar with friends is a nice way to unwind, reconnect and enjoy your free time. It can also get really expensive if you’re not careful, and could even leave you broke.
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If you’re already feeling broke, you’re certainly not alone. Lending Tree recently reported that the national average card debt among cardholders with unpaid balances in Q3 2024 was $7,236. This is up from $7,130 in Q2 2024 and includes debt from bank cards and retail credit cards.
While these figures are concerning, you don’t have to be a statistic. Here are four ways to compensate if you’re too broke to go out with friends and avoid debt at the same time, according to experts interviewed by CNBC:
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Designate a ‘Spontaneous Yes Fund’
The more friends you have, the more likely it is that you’ll be invited to social gatherings, events and hangouts. In almost every case, occasions like these are going to cost you money. Having to say no to plans with friends because you don’t have the extra cash on hand is not a good feeling.
To create and grow a “spontaneous yes fund,” consider setting up automatic recurring deposits from your checking account to your high-yield savings account that correspond to your payday. The weekly amount can be whatever you’re comfortable with — whether it’s just $5 per week or $50 per week. This way, when social plans strike, you can easily say yes without having to worry about landing yourself in debt.
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Evaluate Which Relationships Are Worth the Expendatures
Over time, we all develop friendships, many of which are acquaintances. The more friends and acquaintances you have, the more things you’ll probably be invited to. However, this could mean you’ll spend more money, as well. If you really want to cut down on discretionary spending, take a close look at your relationship and spend time discerning which are most valuable to you. By cutting out those that don’t make a positive impact on your life, you’ll be doing yourself (and your wallet) a favor.
Plan Around Higher-Cost Activities
Consider taking the initiative with your friend group and plan activities that are low-cost or free. Instead of going out to dinner, invite your friends over for a home-cooked meal. Or, instead of going to the movies together, invite your friends over for a movie night. With some basic planning, you can reduce your discretionary spending and start saving more money, all while keeping your social plans intact.