Our family is always there to help us and to stand by our side. Through thick and thin, they are there to give us the assistance we need. This is why having the support of our family can contribute to our peace of mind and well-being since we know that we can count on them during tough and trying times. But at the same time, there are situations when it may feel awkward to ask for help from your parents. A small amount may seem a little easier to ask, but then what if we are talking about hundreds or thousands of dollars? Do you think you will not feel the least bit uncomfortable about asking this amount of money from your parents?
Presently, you may come across a number of options available if you need a source of extra cash for an urgent expense to be paid. Just on the internet, there are pieces of information revolving around getting by when financial crises come along. Taking out a loan may seem to be an option for some, although there are documents to be submitted, along with a review process that moneylenders take as an important step before they approve someone of a loan. If you need some money right away, how can you possibly address this concern? Is it time to go to your parents and ask for cash to settle your needs?
Here, we look at some of the do’s and dont’s when it comes to asking for financial support from your parents. It may be best to have an understanding of these situations that will impact your decision before you approach your family member and start asking if you could borrow some cash.
1. Do ask your family member for some money if it is only a minimal amount
Perhaps, it is only a few days away before your paycheck arrives. But a few days can make a huge difference if there is an urgent bill to be paid. But we are not talking about several hundreds worth of bills. It is more of a small amount of money that you might need just to carry you over until the paycheck comes.
Before you borrow money, always think if you are capable of returning the said amount. Even if they are your family members, this does not mean that you should just ask for cash left and right. A small loan is fine, particularly if you are completely sure that you can pay it off fast enough. What we mean by a “small loan” would be as little as $50 to as much as $100 that could help a great deal for an immediate expense.
Of course, you may want to plan your expenses carefully. Set a budget and be sure to stick to it. This is an effective way to avoid the uncomfortable situation of having to borrow money from your parents. In the same way, you do not want to end up straining your parents’ finances, which can add to their stress level.
2. Don’t ask for cash when you are planning on using this for your vacation
If you are still in school, it may be fine to ask for some pocket money from your parents. For instance, you may want to go on a short trip with friends. As long as it is just a minimal amount, plus you are still in unemployed, then it may be fine to ask for a few dollars from a family member.
But you have to realize that things change once you have a full-time job. There are higher expectations on you, so you need to avoid borrowing large amounts of money from your parents just to give in to your whims. You should never ask for money just to cover your travel funds and go to your dream vacation spot.
In case there is a trip you wish to go to, then be sure to save up for it. Plan for your travel and know your budget and expenses well. Depending on where you are going, it may be something that will require long or short-term planning. So, make it a point to prepare for it thoroughly instead of simply acting on impulse without even checking if you have sufficient funds in the bank for it. Most importantly, if you have financial obligations or debts to be paid, it may be smart to pursue a trip once these are settled. Adding one debt on top of another will only lead to greater problems in the future.
3. If you need to borrow money, let it only be for your emergency funds
Sometimes, we have unexpected bills to be paid whether it is a credit card bill or a car repair cost that are what we can consider as emergency expenses. This is why we have such a thing as an emergency fund, which is designed to cover for these costs. In case the need to pay for these things arise, we will always have a way to dip into our savings for emergency purposes.
But then again, there are cases when the money we have in the emergency funds may not suffice. It could be due to the piled up debts or expenses, and there is a need for you now to obtain fast cash to avoid penalties for non-payment of a present bill.
When you need some money for your emergency expenses, then it may be fine to ask for some additional cash from your parents. As long as this should only be a few dollars, then there is no problem paying it off in the future, right? Do your best to examine your capability to pay the loan off, so you will not have to worry about stretching yourself thin in the future.
After you borrow some money, it may be a good time to re-evaluate your expenses and lifestyle. To avoid having to loan cash too frequently, you will need to be more aware of where you money goes and your spending habits. Grow your emergency funds and prevent financial crises in the future.
4. Never ever ask for financial advice from people unless you are certain about their experience and knowledge
Sometimes, we just need some pieces of advice and tips when it comes to handling our finances. We can learn a lot from experts who have been through so much in life whether it is in the field of investing or studying the benefits of insurance, as well as wealth management. These are the people we can truly learn from as they have extensive knowledge, skills, and experience that make them qualified to give sound financial advice.
On the other hand, there are those who feel as though they have plenty of things to say when it comes to growing one’s wealth and assets. But you need to check first if they are even worth listening to. It may be the fact that they lack discipline in handling money, or they do not know enough about wealth preservation or increasing their retirement funds.
So, this goes to show that if you are certain about your parents’ ability to express financial discipline, then it is only right for you to mimic their ways. On the contrary, if they seem to not display such skill, you will need to exert an effort to keep yourself educated. There is a wealth of information available online or from professionals whom you could consult if you want to learn more about the value of investing, increasing your retirement funds, and setting up your savings account. These should prepare you well for your future, specifically in terms of your finances. When in times of desperation, you can always turn to licensed money lender in Singapore to get temporary help. All in all, everyone should know how to save up for rainy days.