Have you bailed a family member out of financial problems again? When do you decide that enough is enough? The reasons behind the debt troubles would probably be the deciding factor for most people. If your generosity is enabling bad money behavior, it would make lots of sense to back away as their money solution. If you are helping someone who lost their job or needs more medical attention than they can afford, you are an angel in their lives. Bad money behavior does not make a person bad, but it does warrant the need for help beyond the financial kind.
Unless there is a dire emergency, no one should borrow money to help someone else. If you have emergency cash in the bank then you can evaluate the situation. Will you ever see a penny of that money returned? Will this loan ruin your financial state? Make sure you are mentally and financially comfortable prior to digging a family member out of debt.
-Is there addiction fueling money problems? If yes, there are more important things to deal with here. There may be a need for an intervention. You can stipulate professional counseling or medical attention as grounds for money help. Let this person know ahead of time that if it continues to happen, you will not dig them back out of debt. Be clear in your expectations. Tough love is not easy.
-Medical attention for a loved one is priority for those who can afford to help. Besides helping to support their medical needs, money help will decrease any unneeded stress. Medical attention can go on for lengthy periods of time; you will want to evaluate your own financial situation. Make sure it doesn’t create problems for your family. Besides money help, you could help look for additional assistance.
-Job loss will severely affect a household especially if there was only one income to start with. Any size savings account will go fast. Helping family during this crunch time is a blessing. You can also help by networking with people in your circle for information on job openings.
-A divorce creates financial, mental and emotional distress. As a family member, you may be able to provide much more than monetary help. There is oftentimes a move involved, children to care for and emotional anguish to recover from. Don’t put your own finances in distress, but offer what you can to help smooth out a difficult transition.
-Mismanaged funds might send out a cry for financial help. It’s always good to help a loved one when you can, but your help can also stipulate change by sharing management strategies. Offer to help evaluate the budget, find money leaks and plan goals and objectives. You are not a short-term lender to provide cash whenever there is a problem. Help find a solution to a mismanaged budget.
Money help is only a temporary solution. There are many budget problems which are not caused by serious issues. They too can be prevented. Self-managed budgets will back up the occasional money emergency. Advice and knowledge are oftentimes more valuable than cash. Help your loved ones to get them over the impending problem and prepare them for future ones as well.