How To Help A Loved One Get Out Of Financial Troubles 

When a loved one faces challenges with their money, you may sometimes feel powerless to help them.

These types of problems have been especially prevalent during the pandemic. After all, some people have undergone such extreme levels of financial stress that they feel as if they are at wit’s end and without help. By following the points that we have outlined for you below, you will hopefully be able to disprove this theory and provide some solid support for any loved one that is still in the throes of hardship.

Keep reading to discover how you can help a loved one get out of their financial troubles.

Be a Good Listener 

It is important to gauge the precise nature of the financial troubles your loved one is facing. To get a better grasp on their situation, first try to be a good listener.

Create an environment where they are compelled to share all the behaviors and/or circumstances they may have come to regret. If you can help them to feel that they are in a judgment-free area, your loved one may feel more inclined to express their deep-rooted financial concerns. For instance, some husbands may feel shame about earning less than their wives and even fudge their numbers in their favor on earnings reports, so you may need to be patient before you get to any kind of truth.

At the beginning, not every problem they present demands an immediate solution. For example, if your loved one is in debt, discuss not only the amounts they owe but the reasons behind their situation. Is their debt merely a symptom of a bigger issue? Practice patience and explore every avenue, and hopefully, your listening skills will pay off and create more acute answers to the financial problems your loved one is facing.

Help Them Budget 

Unfortunately, some people are just not financially savvy, and not everyone is cut out for making the best decisions with their money.

In this scenario, it may be a good idea to invest some of your personal time into helping your loved one budget effectively. Parts of your role here could include:

  • Creating a budgetary spreadsheet – Outlining their income, bills, taxes, and spending money may help your loved one embark on a better financial path.
  • Monitoring their situation – Budgets not only need to be created but followed consistently. Perhaps visit your loved one fortnightly or monthly to ensure they are doing well here.
  • Adapt the routine – Your loved one’s budget may need to change overtime to reflect their evolving circumstances in life. Fine opportune moments to give them the reigns to their budget, but perhaps oversee what they are planning so you can offer your final approval.

A strong budget can help guide people to make better decisions with their life. Once your loved understands its value, they become more inclined to take some initiative and draft their own. Try to think this process as setting an example, not only in their expenditures, but also in how they should approach their responsibilities in life also.

Monitor Any Monetary Addictions

Monetary addictions can take shape in many different forms and may even evolve throughout a person’s life.

Obviously, there are the more dangerous addictions here that you should be wary of. Gambling, alcohol, and drug addictions can cause devastation financially, and sometimes lead to sufferers losing everything they worked so hard to achieve.

However, less life-threatening monetary addictions can also take place. For instance, your loved one may be pouring all their money into things like:

  • Shopping sprees – Purchasing desired items can be worthwhile, but it is only sustainable if the buyer has the finances to back up their spending. Some people have easily overspent online during the pandemic too, so some financial recovery may be required here also.
  • Subscriptions – Whether it is to streaming services or issues of a favored magazine, subscriptions can quickly tally up high to the surprise of the subscriber.
  • Collections – If your loved one frequently collects expensive memorabilia, it could be that these costs will sneak up on them sooner or later.

It may be that you can play an important role in providing some perspective here. Perhaps try to be a guiding light in navigating these mirkier financial areas and put your loved one in a better position moving forward. After all, even innocent pastimes can be warped into something ugly when done in excess, hurting one’s finances thereafter.

Caution Their Social Circles

It may be that your loved one’s poor financial habits stem from poor influences in their social circles.

Is your loved one taking advice from a friend who is not trustworthy? Perhaps they are being pressured by their friends to squander their earnings on less noble pursuits? It is worth keeping these factors in mind so that you can determine the source of their poor financial behaviors. Sometimes, these traits may be learnt from others, and not materialize out of boredom or curiosity.

If you do know someone who is a poor influence on your loved one, advise your friend or family member in being cautious around them. Friendships can be perfectly healthy without parties mimicking one another’s interests or having the exact same interests in all areas of life, so it might be that you need to nudge your loved one in a different direction from that of their so-called friends.

Recommend Helpful Services

If you have elected to help your loved one, then you should no that you are not long in your endeavor.

Fortunately, there are an array of financial services that you can refer them to. You could recommend government benefits, loan, and retirement programs for instance, and provide some support as they go through all these official channels. Remember, each service should have designated professionals who will provide their input into matters, so their expertise could also be invaluable.

If you want to help your loved one greatly, you could also introduce them to Tally, a credit card payoff app that clears debt quicker. That way, they can also build better credit to open more doors in their future. They can also get started with this entire process exceedingly quickly, and all their card information can be found in one place, so it is a great option to consider if your loved one needs to turn their financial life around fast.

Offer Financial Support 

It might be that you are well positioned to offer some financial support yourself. Of course, this may be dependent upon your personal circumstances, and those of your loved one.

Depending on your loved one’s problem, and how much you are prepared to sacrifice for their betterment, it could be a good idea to lend them some of their own money. If they are looking to invest in a business opportunity, helping them meet their financial threshold could be lucrative. Additionally, they may need a one-time payment to meet a deadline for a bill and pay you back promptly thereafter.

Obviously, matters here are largely down to your own discretion and the history you share with the loved one. Do they have a history of paying people back? Is their cry for help likely to spiral into further issues where they merely waste what you lent? Depending on their character, they may not be inclined to answer these questions honestly themselves, so closely analyzing their situation and cross-referencing it with their personality is the best thing to do.


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