If you have financial skills, you can help friends and family with money management. Most of the time, people are looking for advice, which is free to give and easier to understand coming from you.
If your friend keeps overdrawing his checking account by $1, costing him $35 in overdraft fees, it might be time help explain the ABCs of personal banking.
If your friend is paying 21% on a credit card, chances are he does not understand credit ratings, refinancing and the different products out there.
Offering help can be a slippery slope. Try to remain detached if it’s a friend, and offer money only if you have a contract and you know you’ll be paid back.
Friends and family who make financial blunders are often unreceptive to help. But if you do help, make it clear you are not there to bail them out but to offer support and education. Recommend they talk with professional financial advisors if you can’t help.
Some of the toughest obstacles to financial success include:
- Being greedy, always wanting more
- Possessing and not sharing with those in need
- Disagreeing as a couple, if you’re married, about how to manage money
- Failing to develop a budget or follow through on a spending plan
- Neglecting your tithe or failing to save for the future
Intentionally serving others does not always mean charity work. Sometimes, sharing what you’ve learned is very helpful.
Dr. Randy Carlson discusses the 10/10/80 principle of finances
Teach your friends to live within their means and to be smart with their finances. You can help them even if you do not lend money.
- Listening is important: Sometimes, your friend might just want to talk, yell or cry. They might need a shoulder to cry on or someone to listen to options.
- Connect to the community: If your friend’s embarrassed about being financially strapped, he or she might withdraw from social events. Their children might have to stop participating in local activities because of the money. If you can, invite your friend and family to community events with you. Try to find free or inexpensive events. For dinner, try a potluck to reduce the costs.
- Small deeds: Chat with your friend regularly, either in person or on the phone. Be there in spirit and in the Lord.
Good financial habits can make a lifetime of impact. You’ll see the momentum in your friend’s life.
If you could do ONE THING and know that it would make a significant, lasting, possibly life-changing difference in your life, would you do it? Dr. Carlson shares the power of ONE THING and why you should get started doing your ONE THING today.
How do you keep your financial house in order? What’s your most effective financial secret? We’d love to hear your success stories. Post your comments below.