Get comfortable with talking about money

We often avoid conversations about finances with our friends because it’s uncomfortable. But not talking about it can make things even more awkward, and we find ourselves making up excuses for not doing things rather than being upfront and explaining that it’s out of our budget.

If you’d prefer not to spend on a fancy dinner out every night, try not to compare yourself and your financial situation to your friends. They might be suggesting expensive destinations and activities, but discussing openly how much you’re comfortable with paying might even make them realise they don’t want to spend as much as they first thought.

Be prepared to negotiate and compromise

Bali may always sound like a good idea, but if your friends are suggesting destinations that are out of your budget, suggest alternatives rather than saying no to the holiday entirely. Lesser-known islands or towns just outside of main cities are often a lot less expensive and usually have fewer tourists. Look at other accommodation options, such as renting an apartment or an Airbnb instead of staying in a pricey hotel and staying somewhere with a kitchen means you can save money by cooking at home instead of eating out every night.

Remember to compromise though, so that everyone is happy. You could suggest a cheaper hotel that has options for your friends to have luxury upgrades, or you could stay in a more affordable apartment so you can budget for more extravagant activities and nights out. If possible, suggest changing the dates they’re looking at and travel out of season to save money on destinations you couldn’t afford in the height of summer.

How to deal with the friendship wage gap on holiday without things getting awkward