Are You Willing to Spend your Personal Emergency Fund for Others?
Published: June 17, 2014 | Updated: June 14, 2021 | Posted by: Moneymax | Personal Finance
Pinoys have been branded with extended family ties – we take into account the responsibility of taking care of our families – our mothers, fathers, brothers, sisters, lolo, lola, auntie, cousin, nephews, friends and so on – the list is just unending.
For someone who has financial plans and even an intact emergency fund, the urgency of a financial emergency of a loved one wouldn’t be dismissed, but the helper’s financial plans may not materialize at all after helping out. If you are one of these helpless people with a big heart, here are some ways on how to cope up other people’s money emergency:
Table of Contents
Confirm the emergency details.
You have all the right to make sure that your money will be really used of an emergency situation. If a loved one approached you, ask about the details and make sure that the situation is really an emergency. If your niece is asking for a loan for a One Direction concert, then I guess that doesn’t qualify for an emergency.
Put on some limitations.
Helping others is a great act, but if your loved ones are abusing you, then I think it’s time for you to harden your heart a little bit and be stern. If he or she have come to you several times already because of debt, ask him or her not to go around borrowing money. Instead, do this next step.
Offer a help on financial management.
If it’s really bothering you that your family member or friend is in constant financial help, offer a sit-down talk for some basics of saving and how to manage debt. If you have ways of earning extra money, then teach them how. Invite them to finance seminars and tell them to visit Filipino finance groups in Facebook and more. Do everything that you can to inspire them. Build in them a great desire to get out of the uncomfortable life.
Re-validate your priorities and make some adjustments.
Since you have lent extra money, you have to re-validate your financial plan and make some adjustments. Of course, your monthly contribution for your stock cost-averaging strategy might be affected. You may miss your next healthcare premium payment. If you have taken the money out of your own emergency fund, then you need to save up for it again. Work on this and have a new financial plan. Flexibility is the key.
Encourage them to openly talk to you about money matters.
This is the most important thing that you need to establish in order to minimize the negative effect of these money emergencies in the future. Encourage them to be open to you. If they have debts they have been keeping to themselves or if they have a foreseen major purchase — find them out. One of the reasons why they may not tell you all about it is that they don’t want to burden you. But then, it wouldn’t happen to them that the more they keep you blinded by their financial responsibilities, the messier the future can get if they failed to handle it on their own.
Financial literacy among all Filipinos is possible while keeping intact our Pinoy core which is to help others in need. Let’s achieve financial freedom together.
Aiza Coronado is a financial literacy advocate and a writer who doubles as a test engineer during the weekdays. She has this philosophy of having a “happy present, happy future” when it comes to finances. That way, she doesn’t miss a lot on life while building her financial tract. Try stepping into her boots and see how she does it in her blog: LoveisaMutt.
The views & opinions expressed in this special guest post are the author’s and do not necessarily reflect the opinions & views of MoneyMax.ph as a whole.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.