The following is a guest post…
Most of us have a friend or relative who has got into something of a muddle with their finances. In this day and age, it is increasingly common for people to find themselves in this type of situation, and more and more people are finding it hard to manage their finances and debts effectively in what has become a very difficult financial climate.
Naturally, those who have loved ones who are in a financial pickle are eager to try and help out in some way. It can be invaluable for those in financial turmoil to have the support and assistance of someone that cares about them. However, if you are planning to offer your support to a family member with money problems, you need to make sure you go about it the right way. There are certain things that you should do and a number of things that you should avoid doing when helping a loved one with their finances. Some of these are listed below:
Helping a loved one with their finances:
- Show them the way: Some people fall into problems with their finances because they simply don’t know how to budget. If this is the case, spend some time going over their budget with them and show them exactly what to do in terms of keeping track of their income and outgoings. This will make budgeting far easier and can help them to overcome their financial difficulties more quickly.
- Encourage them to seek advice: If your family member or friend is drowning in debt, you should encourage them to seek expert advice such as that available from Consolidated Credit. Many people do not want to ask for help from outsiders and feel embarrassed about doing do. However, experts such as these have the skills, knowledge and experience to really help, so this is something you should encourage your loved one to do.
- Help them to increase their income: Your friend or family member may be able to sort out their finances with a boost in income. Help them to do this by assisting them in finding a better paid job or a second job (or even a first job if they are not working). You can help them to search, assist them with application forms, and even give them some advice on interview skills.
- Don’t take over: It is important that you resist the temptation to take over your loved one’s accounts and finances, as they will never learn how to manage themselves otherwise. You need to help and guide them but you should never take over and do everything for them, as at some point they will end up in a pickle again.
- Don’t preach: The last thing someone needs when they are trying to cope with financial issues is someone preaching at them. There is a big difference between offering advice and simply having a go at someone, so make sure you do the former as this will be far more beneficial for your family member or friend.
- Don’t throw money at them: Unless they need help with an emergency, don’t just keep giving handouts to your friend or family member. If they are getting money handed to them on a plate whenever they need it, they are less likely to want to make the effort to sort out their finances.
With your valuable support and assistance, you could find that your loved one is more easily able to get through their financial problems.