I’m a Self-Made Millionaire: My 4 Best Tips for Budgeting With Friends
Written by
Andrew Lisa
Edited by
Renee Ross
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Most people aspire to financial success, but only a few will get rich. And when one member of a family or circle of friends succeeds in building wealth, it can sometimes be hard for that person to maintain relationships with those in the group who don’t enjoy the same financial security.
They might make presumptions about the person’s finances, resent their success or assume they’re willing and able to pick up the tab for dinners, events or even vacations. But in many cases, wealthy people can’t or don’t want to spring for loved ones who earn less any more than they want to match receipts with high-rolling friends who earn more — and they shouldn’t have to do either.
Millionaires have the right to live frugally, guard their wealth and spend prudently just like anyone else. In fact, it’s precisely those habits that enabled many of them to get rich in the first place. The good news is that financial success doesn’t have to cost you precious relationships.
Here’s a look at how two self-made millionaires navigate the pressures of sticking to a budget while still enjoying time with the people they love.
Wealth Without Extravagance Is Easy Wealth To Manage
Dom Wells is the CEO of Onfolio, a company that buys online businesses from independent entrepreneurs, builds them into profitable, scalable digital companies and then sells them for a profit. After 10 years and 20 businesses, Wells now employs more than 30 people and has made himself a millionaire.
Money Won’t Get in the Way If You Prioritize the Things It Can’t Buy
While Wells’ bank account is large, he prefers to live small — no matter whose company he happens to be sharing.
“Being a minimalist is a big part of who I am,” he said. “I find joy in simplicity and believe that experiences matter more than owning stuff.”
That tendency toward materialistic restraint empowers him to preserve his wealth while still enjoying relationships with friends and loved ones without overspending or fostering resentment.
“It’s all about creating meaningful experiences and cherishing the moments I share rather than showing off wealth,” said Wells. “Traveling is a big passion of mine, but you won’t find me splurging on luxury vacations. It’s all about exploring new places, meeting interesting people, and experiencing different cultures.”
Live Beneath Your Means and Your Friends Will Forget You’re Rich
Wells maintains his minimalist lifestyle whether he’s with friends of similar means or those who are not as affluent.
“I’m a firm believer in budget-friendly travel options,” he said. “Staying in local guesthouses, using public transportation and finding affordable yet exciting activities is my way of making the most of my travels.”
But Wells finds that open communication is the most essential piece of the puzzle whether he’s traveling, going out to dinner or just hanging out with friends and family of any income level.
“We talk about the type of activities we can enjoy together that align with our shared interests and financial goals,” he said.
You Built Wealth — Don’t Feel Guilty for Preserving It
There’s a common misconception that rich people live lavishly because their massive incomes and brilliant investments guarantee that another dollar will always be there to replace the one they’re about to spend. The truth is that most self-made millionaires build wealth through cautious spending, modest living and diligent saving.
Those who know them and know their habits shouldn’t expect them to change once they reach a seven-figure magic number. Even so, it’s best to clarify your intentions upfront to prevent resentment and misunderstandings down the road.
Manage Expectations by Setting Boundaries
Joel Efosa is a real estate investor and CEO of Fire Cash Buyers. He made a small fortune by purchasing, revitalizing and selling fire-damaged properties. He worked hard for what he has, and he’s unwilling to squander it because of peer pressure to spend recklessly.
“Even as a self-made millionaire, I’ve found it crucial to maintain a budget when socializing,” he said.
Although discussions about money can be uncomfortable, Efosa finds them necessary in order to set boundaries and manage expectations.
“I’m upfront about my spending habits,” he said. “I let my friends and loved ones know that even though I have the means, I believe in frugality and responsible spending. This prevents awkward situations and sets the tone for mutual respect regarding financial matters.”
A Little Planning Can Go a Long Way
The second part of Efosa’s money-management strategy is fairly simple — he plans ahead.
“I try to anticipate the potential costs of an outing or event and budget accordingly,” he said. “This could mean choosing a restaurant within a certain price range or suggesting activities that provide entertainment and value without excessive cost. Remember, wealth preservation is as important as wealth accumulation. By sticking to these principles, I’ve been able to enjoy my time with friends and loved ones while also maintaining my financial goals.”
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