Have you ever told your friends how much you earn? Or was there a moment in one of your peer gatherings where you discussed each other’s salary? What do you think are the pros and cons of telling your friends how much you make?

Telling your friends how much you’re earning can be a sensitive topic. You may feel like it’s important to be transparent about your finances and to have an open dialogue about money with your friends, but you may also feel like it’s something so private that it’s nobody’s business but your own.

So before you and your gal pals dive into knowing each other’s deepest *darkest* secrets (in this case, each other’s paycheck), you should first know what you’re about to get yourself into. If you’re curious about the pros and cons of doing so then keep reading to find out!

3 Pros Of Telling Your Friends How Much You Make

More or less it’s understandable if most of you would steer clear from telling your friends how much you’re earning. As mentioned earlier, generally, it’s sensitive to talk about income with your friends.

Nevertheless, let us look at some possible good results it may bring you. Take note that the following pros are just among the advantages you could weigh in as you plan to tell your friends how much you make for a living.

1. You can better assess your current financial standing

When you know how much your peers are earning, you can better assess your current financial standing and your Net Worth.

“Did I accept such a lowball entry for the job I applied for?”

“Have I been stuck in the same company for years that I failed to notice that salaries in my industry have increased?”

“Maybe it’s about time I come up with a side hustle that I can do during my spare time.”

And the list of questions goes on! It can make you feel good and give you a better understanding of what you can do to improve your financial health as well as your financial goals. In addition, having a positive net worth can boost your ego while having a negative net worth can make you strive to handle your finances better. So the next time someone asks you how much you make, don’t hesitate to tell them because you will learn something about what you can do to improve your money trajectory.

2. You’ll get good advice.

Another advantage of telling your friends how much you earn for a living is that you’ll gain advice like negotiating for a better salary. Moreover, asking for a salary increase can be justified especially when you know your friend’s tasks are the same as yours. You also get to channel your negotiation skills or better yet, figure out if it’s time to do a little job hopping and see if you land on greener pastures. Now isn’t that a good advantage of telling your friends how much you make?

Another advantage: If you have supportive friends who also want to work their way up the business or corporate ladder, sharing how much each person earns can lead to healthy discussions and the releasing of the so-called “creative juices”. Should you guys put up that cosmetic or makeup business you’ve always planned for or should you all try to apply for that international company you’ve been setting your eyes on for the longest time?

3. You’ll find out if you’re the highest earner among friends.

Lastly, as you participate in salary discussions with your friends, you’ll come to see if your income is the highest.

“I’m the highest earner. What now?”

You will be proud of it, right? However, beware of this advantage because it could lead you to the worst side like your friends getting jealous, being unintentionally branded as the go-to person for treats (libre), or the instant “financer” of the group.

3 Cons Of Telling Your Friends How Much You Make

So what about the reverse results of telling your friends how much you earn?

If there’s an advantage to telling your friends about your income, a disadvantage always comes within. As mentioned earlier, you should weigh the pros and cons of telling your friends how much you make, very much akin to balancing happiness and money without depriving yourself.

1. You make yourself vulnerable to judgment.

Generally, it’s no secret that a person is often judged based on income. Most individuals tend to make assumptions about others based on how much money they make. Well, your friends aren’t an exception to this kind of person. Perhaps your friends may not intend to judge you as you discuss each other’s income but chances are they will inevitably (and subconsciously) do so depending on their upbringing, values, and beliefs

As mentioned earlier, your friends will judge you in case they get jealous of you after knowing that your income is higher than theirs. But if that’s the case, maybe they’re not your true friends after all? Remember, real friends celebrate your success and rejoice with you no matter what your income level is.

2. You might feel pressured to change jobs.

One downside of telling your friends how much you make is the pressure of trying what they’re doing because the moment they tell you their income, disclosing jobs will follow. This may lead to thoughts on changing your current work, especially when your friends are earning well.

Before you make any hasty decisions, the following are a few things you should keep in mind.

  • Remember that everyone’s lifestyle, commitments, and current situation are different.
  • Just because someone earns more money doesn’t mean he’s happier or more successful.
  • Think approximately your very own desires and what you need to achieve.
  • If you’re happy with your current job, don’t let money be the sole factor in deciding whether to stay or go.

Related Post: Overcoming Financial Peer Pressure When Out With Friends

3. You could end up feeling left out.

Another downside of telling your income to your friends is you may feel left out. When you or any of your friends start to share something like earning so well, most of you will be bragging about it. And it can be seen negatively. Your friends will feel uncomfortable if they make less than you do. The same goes for you if you’re earning less than your friends. In the worst scenario, you’ll find yourself losing friends.

There you go – the pros and cons of telling your friends how much you make. Indeed, it takes courage to disclose to your friends how much you earn for a living. In addition, it helps you to know your value or worth. However, it can also lead to resentment, envy, or insecurity. Ultimately, you need to weigh in on disclosing your salary and consider the best for both parties (you and your friends).

By Sherie Neri

Sherie is one of the experienced writers of The Thrifty Pinay Team since September 2022. She is a finance and accounting person by profession who worked in this field for over a decade. Aside from loving finance and accounting, she is passionate about writing. She writes SEO blogs and ghostwrites articles and ebooks. She has a passion for writing about personal finance to spread financial literacy awareness and to live that so-called financial freedom along with her shared personal experiences. Visit her website: https://www.sheneri.com/