Article Author:
Associated Press
Lauren Schwahn Of Nerdwallet
With rising inflation, interest rates and recession fears, money is becoming increasingly tight for many, and probably for you. I'm here. Still, there may be charities you want to support, friends and family looking for financial help, and things you want to buy for yourself. is. But if you want to be responsible with your money, you have to know where to draw the line.
When is it okay to put your own interests first? Please use these criteria as guidance.
If your finances are at stake
Think twice before spending money on someone, whether it's $20 or $2,000. please. You may not be able to pay your bills or save for emergencies. Don't sacrifice your own expenses or goals to pick up lunch tabs for your friends or send your kids to college.
An important part of this evaluation: Assume you don't get your money back. No matter how well-meaning your loved one may be, there is no guarantee that they will return the favor to you.
Accredited Financials of Fort Worth, Texas, his planner, Lacy Rogers, says, "If you can't afford to give it as a gift without expecting anything from your side, you can't afford to help." increase.
Saving to "give a budget" in a designated account, says her Chicago-based CFP's Valerie Rivera, allows for a clear separation of spending. If you don't have enough funds in your account, it shows that you are not sparing money.
You are being pressured to pay
You don't have to give money, even if you have the means to be generous. You have the right to say no when you feel stressed or uncomfortable. Don't let others tell you stories that they will regret.
Saying no can be difficult, especially when dealing with family and close-knit communities. Guilt and obligation often cloud judgment. Your mother raised you, so all you can do is pay off your credit card debt, right?
Many people coming to the country for the first time in their families or going to college say, " It can quickly become a financial safety net for other people,” Rivera says.
Having early financial discussions with loved ones can often help set expectations. "It's perfectly fine to re-establish or establish for the first time what money looks like in a discussion with friends and family," said a certified financial counselor (AFC) in Tumwater, Washington. Kate her Meeritz says.
Take time to process each request for money. If you have any concerns about being used for or assisting in harmful financial activities, please consider passing.
There are other ways to help
Helping someone you care about doesn't always cost money. Your time, skills and knowledge are also valuable.
Suppose you have an elderly neighbor who used to buy groceries. “We may not be able to buy groceries anymore, but if we can help with the yard work, it might ease their burden in another way,” says Rogers.
If you are unable to attend in person, point your loved ones in the direction of someone who can. “Get to know yourself or help a friend or family member familiarize themselves with resources in the area. Be it food banks, second-hand clothing, recruiting services or reopening assistance within the community. , they move forward and put up a stronger leg," says Mieritz.
Visiting 211.org is one way she finds help with basic necessities like paying utility bills and accessing food. For those wanting help managing their money, Mielitz recommends setting up a free virtual appointment with her AFC through the Association for Financial Counseling & Planning Education.
You set aside money to treat yourself
Taking care of your own needs and goals (and giving to others) is important. But everyone deserves a little fun.
"We are human and we need balance. Saving for the future is not enough to enjoy life today," says Rivera.
If you have money at your disposal, don't spend it all on others. Leave room for self-care, entertainment, or whatever brings you joy. Whether it's eating out, drinking with friends, or buying a book," says Mieritz. “But you need to put together a spending plan and know what you have access to, because sometimes you don't have the money, but you spend it anyway.”
Secure funds regularly. or shuffle your spending gives you the flexibility to splurge on your own without hurting your finances. If you can't find extra money, take advantage of resources like Free Sessions with AFC. Our experts can help guide your funds in the right direction.
"In general, life is a series of trade-offs," says Rivera. “So pick and choose what really adds value to your life.”
————————————————————— ——————-
This column is for the personal finance website NerdWallet. Lauren Schwahn is a writer for NerdWallet. Email: lschwahnâ†*nerdwallet.com. Twitter: â†*lauren–schwahn.
Related Links:
NerdWallet: Budgeting 101: How to Budget https://bit.ly/nerdwallet-finance-how-to-budget-money
211: Important Community Resources https://www.211.org
Financial Association Counseling & Planning Education: Find a Certified Financial Counselor https://findanafc.org/home/pro-bono/general/
