I think there's a fine line between being honest for someone's benefit and being honest just the sake of it. When it comes to your friends, it depends on the type of relationship you have. Being completely honest with occasional friends isn't always necessary but with your best friends, honesty is the only way to have a real friendship.
With my closest friends, I am as honest as possible but I do it in a positive way. If I don't agree with a decision they've made or something they've done, I tell them, but I make sure that I'm not judgmental or hurtful. I let them know that even though I don't agree with something they've done, I understand their reason for doing it, and we discuss other solutions.
When it comes to little things, like a person's haircut, or what they're wearing, honesty again depends on the type of friendship. Some people ask for advice on their appearance because they want the truth. So I give it to them. But others ask because they are fishing for a compliment. I'm not a fake person so I won't lie, but I won't tell them the truth either. eg/ One of my roommates dyed her hair and I didn't like it. The first time I saw her after she got it done, she obviously wanted me to comment. Instead of saying "Oh wow your hair look amazing!" I said "Wow you dyed your hair, it looks so different!"
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