Anytime someone you love experiences hardship, often, your initial reaction is to help them in any way you can.
Unfortunately, when the problem is financial, it can be difficult to know just exactly how to do that.
While offering up money yourself might feel like a valid suggestion, if you’re truly hoping to help your relative get their finances together, merely providing them with money can often do more harm than good.
Instead, consider these four ways to help family members get their finances in tip-top shape.
1. Help Them Create a Budget
More often than not, financial disarray comes from either a lack of a budget or a budget that merely doesn’t work. Whether your relative needs to create a budget or find one that better fits their situation, setting up a budget is one of the best ways to assist your family member.
Sit down and acquire the details of their income and all their expenses. After which, organize an appropriate budget based on what they earn and what is a need for them. Furthermore, take a look at some of their unnecessary expenses and have them consider what they could cut out or cut back on.
2. Set Up Their Bills
After a budget, setting up regular bill-pay or a bill paying schedule is the next best step. Not accounting for certain bills and expenses can leave many people spending when they really should be saving for their needs.
Help them consider their options with automatic bill-pay and direct deposit, or assist them in coming up with a solid schedule that will always keep them on track.
3. Help Them Find Professional Assistance
Sometimes, getting someone else’s finances in order, especially if they’re too much of a mess, can be out of your depth. So, unless you’re a financial whiz, one surefire way to assist a relative is to help them find the right professional assistance.
Whether they need help with taxes, debt, jobs or even lenders, make a point to help them research and find the right help that best suits their needs.
4. Be a Resource
Although lending money might not be the best option, you can always be a resource in other ways. Be your family member’s accountability enforcer to help them make sure they stick to their budget and plan.
Moreover, be someone they can turn to with whatever they might need help with financially. Again, if you can’t help directly, help them find someone who can. For example, installment loans are always an accessible option and you can easily just help them find a proper lender.
At the end of the day, simply be your relative’s resource to come back to whenever they have questions or concerns. Merely having a sounding board can be a huge help.
It can be difficult to refrain from jumping in and doing things yourself when it comes to family. However, if you truly want to be of assistance, take steps to help family members on the path towards good financial habits.
By setting them up with plans, goals, and budgets, you’ll set their finances in order for life.
What are some ways you might help family members who have trouble with spending or sticking to a budget?