7 Types of People To Never Trust With Your Money


One fundamental rule of building wealth is that you should be careful with whom you trust your money. This is because trusting people without screening their traits and personalities only makes you vulnerable to theft and dishonesty. Actually, it is one of the fastest way to lose money or be taken advantage of but fortunately, I’ve detailed below individuals who you must never let close to your money and hopefully you’re not one of them!

Number 1: People who don’t have a budget

The first category of people that should never lay hands on your hard-earned money are people who give little thought to budgeting. I mean, if they can’t use their own money wisely, what makes you think they will handle yours any different?

As a rule of thumb, you should only lend your money to people who know how to manage their own finances properly and good money management is anchored on effective budgeting. Through budgeting, one can map out how they intend to spend their money while prioritizing their most important expenditures. But if someone doesn’t budget, the odds are pretty high that their money will always fall short, especially when it’s time to pay you back.

Such people often splurge on unnecessary items while completely ignoring the important ones, such as bills. These people effortlessly go on shopping sprees, max out their credit cards, and rarely stash away any savings. They can gobble up thousands of dollars in a flash yet have nothing to show for it.

Why? Because their lack of budgeting only paves the way for overspending. Any person that doesn’t allocate their finances accordingly will always spend more than they have. As a result, they will get into debt and come back, asking for more from you. So before you dish out money to someone who slacks on budgeting, think twice!


Number 2: People who spend to impress others

There’s a category of individuals that obsess over what other people think of them. You can call them people pleasers and if you ever let them get close to your finances, they will milk you dry. And here’s why. You see, such kind of people spend money to impress others. They love creating a false impression about their imaginary wealth for the sake of finding favor in other people’s eyes. You will find them parading flashy cars and expensive clothing, yet they are likely barely able to make ends meet in reality.

These same people will shower their friends with luxurious gifts, simply because they love what it does to their ego. This caliber of spenders also easily succumbs to societal pressure, and often they allow this pressure to determine the car they drive, the neighborhood they live in and even the clothes they wear. They will jump on any trend just so that they can keep up with the passing wave.

There’s no denying that the fleeting moment of adoration from peers can be significant. The problem with such people however is that they will remain forever broke. This is because they have their priorities misplaced and if you ever leave your business under their watch, they’ll squirrel away your wealth without mercy.

Before you entrust anybody with your money, its good to confirm that they are mindful spenders. And what do I mean by this? It’s simple. Mindful spenders are never bothered with how other people perceive them, especially financially. They realize that no matter how much money they spend on people, you they can never please everyone. They focus on their own lives, and water their own grass. But unlike them, the people pleasers will use your money to try make their grass greener than that of their peers.


Number 3: People who take from you but don’t give

Some of us born were with a heart of gold, but it can work against you. If you’re the type of person that doesn’t mind giving, you need to take a step back and evaluate who you’re giving to.

If you never find yourself on the receiving end, that needs to change and if doesn’t you will soon find yourself in loser town. No doubt, we’ve all encountered individuals that thrive at the expense of other people. Such kind of people will readily exploit the success of others without adding any significant value to them. These people will take and take and when you think they are done taking, they’ll take some more. Such people qualify to be termed as leeches.

Leeches will always be willing to have a share of your financial harvest. They will never get tired of asking for your financial assistance, yet when its time to return a favor, they’ll be nowhere to be found. They’ll use your car, ask for cash handouts, and even borrow money with no intention of paying it back.

Unless you want to cripple your finances, you should aim to remove such people from your social circle. If this isn’t possible (like in the case of family), aim to establish solid boundaries between them and your money. Because not only can they derail your financial success, but they may also threaten the opportunities that come your way. The thing is, life is a two-way street. This means that giving to people who fail to give back just won’t work.


Number 4: People who don’t invest in themselves

Another group of people that you should never trust with your money are people who disregard self-investment. There are many rewards of investing in oneself. From having an expanded job scope, acquiring visionary leadership skills, to growing your money, you can never underrate the benefits of self-investment. In fact, lacking the motivation to add any form of value to one’s life can be a bad sign. Not only does it insinuate sheer laziness, but it can also be an indication of debt-defaulters.

Clearly, people who don’t invest in themselves lack the drive that’s required to make and sustain wealth. Such kind of people will never bother to add value in their lives. They don’t read books, exercise, take courses, or even attend seminars that can sharpen skills.

As a result, such people never grow, be it financially, intellectually, or spiritually. If you leave them at point A today, you will come back years later, and find them at the same spot where you left them. Such people make no effort of boosting their self-worth, especially financially. Definitely, monetary investment is one of the greatest way of investing in oneself. Unless one is willing to spend money on nourishing their personal and professional life, they will remain stagnant financially. And if they do, the chances of them taking good care of the money you give them are nil.

For one, the chances of such people investing their money are slim to none, and secondly, such kind of people can transition into leeches. We have multiple avenues through which one can invest in themselves, and some of them won’t even cost you a dime.


Number 5: People who are in debt

For obvious reasons, lending money to someone who is already in debt is a bad idea — so simply put, don’t do it. That is, not unless this is money you don’t mind losing. See, a person who is in debt is already inside a black hole, and by entrusting them with your money, you’re only making the hole deeper. On top of that, you’ll even be digging one for yourself.

Now, it is reasonable to take on debt for a big purchase like buying a house, or starting a business. But if the cause of their escalating debt record is overspending and life-style inflation, you should definitely be cautious about lending them money. Because if they are unable to meet their own needs, what are the chances that they will meet yours? Also, by giving them money, you will only be supporting their borrowing habits instead helping them.

The best way to help such people is to introduce them to budgeting and living within their means. Show them how to cut unnecessary expenses, and how they can channel the amount they save towards paying their existing debts. Help them write down their total household earnings, coupled with their monthly expenses. This way, they will be able to identify loopholes that are wasting their money and possibly pushing them toward debt. This way, you’ll be instilling into them a sense of financial responsibility. Compared to handing them $1,000, this will go a longer way in saving their financial ship. Remember, robbing Peter to pay Paul is a strategy that only lands people in deeper financial trouble.


Number 6: People who seek instant gratification

Instant gratification is a known enemy of financial success. It refers to the inability to resist or delay a desire to a future date. This isn’t an alien concept, because it can affect people of all ages and different walks of life. Remember how as a kid, you would throw tantrums if your mom failed to buy you a certain toy at the supermarket? Such reactions result from seeking instant gratification.

One downside of instant gratification is that it impedes any efforts one makes to save or invest their money. Instant gratification is the root cause of money wasting tendencies like addictions and impulse buying. This is why people who seek instant gratification will always be broke. If you dig deeper, you will discover that you are not the first person they’re borrowing from.

And this is why you should never trust people who seek instant gratification. Such people lack self-control, and when they want something, they will do whatever it takes to get it. It won’t matter if said item can potentially destroy them or land them in financial trouble. If such a person approaches you for financial assistance, chances are high that they’ll use that money to gratify their cravings. It could be food, alcohol, a new gaming console, or anything that gives them a gratifying feeling.

No doubt, such people will pour your money down the drain. Because to them, their need for instant gratification overrides everything else, including paying you back. If you have to put your money under someone else’s watch, it should be someone who knows how to delay their gratification.


Number 7: People who don’t celebrate your financial success

Lastly, you should never trust people who don’t celebrate your financial success. More so if these people form part of your inner circle, you should start keeping your wins to yourself. This is because such people aren’t happy to see you win. Your financial success could be causing them some form of pain or bitterness, and if they get an opportunity to hold you back, they’ll jump on it.

Sadly, these people can be your family members, friends, or work colleagues. At first glance, they’ll appear to have good intentions, but you shouldn’t fall for it. This faked niceness is for the sole purpose of gaining your trust and gaining access into your financial life. Once they are in, they’ll utilize every chance to turn your successes into failures.

Be wary of people of who don’t call to congratulate you on a new job, or those that never attend your events even though it could benefit them. Also, those people that prefer buying products from your competitor fall into this category. If you trust such people with your money, they’ll be determined to shrink and exploit it.

There you go! Those are the 7 types of people you should never trust with your money.