Giving is not always best
Many times we feel like we need to be there for someone and help them out in their situation by borrowing them money or cosigning for them on a loan. Sometimes this can really help this person out significantly for the better, however, in most cases, giving out free financial handouts is not the best thing to do. By giving out free handouts without any conditions gives you no guarantee that the person will pay you back or default on the loan that you co-signed. In many cases, it does no good to give to someone who is dependent and cannot take care of themselves independently.
Take care of your own finances
Knowing what your current financial situation is like and what you want to accomplish will give you power of your future. Do not expect anyone else to take care of your finances for you – not your husband, a parents, or a friend. It is your responsibility to take care of your finances – not a parent’s, spouse’s, or friend’s.
Get Your Worth
Sometimes we settle for less for fear of rejection or lack of confidence in your worth and that can hurt you when it is time for salary negotiations. It is important to understand your value and what you bring to the table. Don’t diminish your accomplishments. Make a list of what you have achieved and what your plans are for the future and don’t be afraid to bring it up when it is time for work performance reviews.
Take Care of Yourself First
Before taking off, a flight attendant will advise you to help yourself first before helping others in the event of a plane crash. The same principles apply in finances. For example, many parents think that it’s more important to save up for their children’s college education than for their own retirement income. Although that may sound caring and generous, that may be detrimental for both the parent and their children because the parent’s finances may become a burden for the child later on.
Understanding the Fine Print
Understanding the legal fine print about your finances may save you from a huge disaster. For example, knowing that life insurance companies do not make payouts to children under 18 can save your wealth from being misdirected. If you have life insurance with children under 18, consider creating a trust account and name the trust as the beneficiary of your life insurance.
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