My Story

Last month, a family member asked me to pay their rent. At the time, their rent would have wiped out my savings.

A lot of you might have experienced similar situations with family and otherwise, where you had financial obligations that you felt pressed to fulfill. 

The first step in making the decision to give financial help to a family member or friend is to consider the financial consequences for both parties involved. 

The reality was that if I didn’t pay their rent that month (they were behind several months), it may have resulted in them being forced to leave her apartment, which would result in a lot of stress. 

If I did pay their rent they would be able to stay in her home, and although my savings would be depleted, I would still have just enough to pay my own rent. I chose to pay it.

It is vital in these situations to make a plan and follow it. 

Advice

Take your income, subtract your bills and expenses, decide how much you want to save/invest monthly and see how much you have left over. Come up with an exact number. You can contribute the money left over to your family/friend, and adjust your savings and investing habits if necessary. 

 If it’s not a regular occurence, know exactly how much you can contribute and how many times you’re willing to do so. 

If it is a regular occurence, set a limit on how much you can give and stick to it. This limit can change, but make sure you have an idea of how much can give each time. 

In either of these cases, write your plan down on your phone or in a notebook and stick to it. 

These situations can be tricky, but there are methods we can put in place to help others and make sure our own needs are met.