✓ Do you have an emergency fund?
✓ Do you have a portion of your income stashed away for retirement regularly?
✓ Do you have freedom from high interest debts?If you answer yes to all of these then you can help support your family. Personally, I know that there are families out there that really need support from each other and their needs cannot wait for enough emergency savings nor do they have enough to pay all their debts. If this is the case then of course it is hard not to help out. STILL, strive to take care of your own finances as well. Get insurance Insure yourself and your family. Consider taking out health and life insurance. The cost may be intimidating for some especially if you only have enough to begin with. However, think about it this way, if you and your contributions are vital then it is wise to protect yourself and your family from uncertainties like illness, accidents and even death. Learn your family’s financial situation Whether you are single or married and you want to or need to help your family (parents and siblings), you need to know the exact financial situation. Have a serious conversation with your family. Get to know the financial situation – how much money do they need in a day to day basis, what kind of financial support do they need, how much do they owe who? After learning about your family’s financial needs, check against your own and see how much you can help. Be clear on how much you can help. Do not try to carry all of the family’s financial needs unless may be you are earning millions every month. Set boundaries As mentioned earlier, be clear on how much you can help.
✓ How often do they need it? Do they need it monthly?
✓ How long should you give support?
✓ How much is your maximum amount per contribution?
✓ What is your family’s financial goal?Remember that helping is only good when you do not encourage habits of dependency or feelings entitlement. Teach them good financial habits Lastly, hep your family learn how to set their budget and spend within their budget. Assist them in looking for other ways to earn so that they can provide for themselves better. This way, you can direct the money you peg for them for something else – like extra savings – which they can also use in case a financial setback arises in the future. Money is often a touchy subject to talk about but it is important for you and your family to discuss before you try to help them. By studying the family’s financial situation, all of the members of the family are on the same page and you get to create a financial goal for the family together. In addition, you are sure that the money you give to your family goes toward the financial goal and not for a whim or a random big purchase. Family is important and we will do anything for them, that should includes making your family’s finances stable not by providing for them all the time but by teaching them how to be sustainable by themselves. Special thanks to American Advisors Group for the main image.