There will come a time in everyone’s life when they need a little bit of extra financial support. If you’re a business owner, you may look at a ppp loan or if you’re in an emergency, you might want a payday loan. However, financial support isn’t just limited to third party lenders. Your family can actually support you in a number of ways, and not all of them include simply giving you money. So, keep reading and discover all the different ways that your family can financially support you.
Offer A Cash Gift
The most common way that people tend to help their family when they’re struggling financially, is by giving them the money they need without asking them to pay it back. Some people may be in the position to hand out money without requiring it to be repaid, so you may be lucky enough to receive the cash they need with no stipulations. You may notice that certain family members give money as a gift as well during the holidays. This can be a way for them to financially support you without you even having to ask. You might feel more comfortable receiving their support this way too as you haven’t had to pluck up the courage to ask for it.
Lend You Money
Sometimes, family members might agree to loan you the money instead of giving it. They can treat it like an official loan as well and do things like ask to see your credit report, get you to sign a written agreement, and even charge interest. This method can teach you to be responsible with your money and not rely on them for handouts constantly. They might also add incentives to the loan. For example, they may knock some of the total repayment off if you reach certain milestones like getting a job or reducing other debt that you’ve got. This can be a great way for you to not only have access to the funds that you need but also help you get a handle on your finances and your life.
Be A Financial Guarantor
Certain loans can need someone to co-sign them, so you might have asked a family member. Although you might think that this borrowing can get you on the straight and narrow, family members may be a little wary about signing. Make sure that they’re able to see a copy of the agreement and are able to have any questions they have answered. Essentially, they’re liable for the loan if you aren’t able to make the payments, so it’s a big ask. This doesn’t mean that they won’t want to do it, but it can be scary for them to know that suddenly they could be hit with a load of debt that they didn’t want. Asking someone to be your financial guarantor is a lot to put on their shoulders, so make sure you’re upfront about everything at the beginning and don’t keep anything hidden.
Encourage You To Budget
If you’re struggling to budget, then why not ask your family members to help you. Show them what your current budget is and ask them to take a look at it to see if they could suggest some improvements. They might spot something that you don’t, as it’s easy to miss things out when you’re too close to it. You could ask them to help keep you financially responsible by having them check up on your spending or running your purchases by them first. If you feel the need to splurge, give them a call and ask them to talk you down from it. They can remind you why you’re budgeting in the first place and keep you from ruining all your hard work. They’ll be able to hold you accountable and you might start to see your budget through new eyes. With their support, you should soon find your budget a lot easier to stick to.
Financial support from the family doesn’t always have to come in the form of money. There are lots of things that they can do such as helping you to budget or becoming a guarantor so that you can hopefully turn your life around. So, if you ask your family for financial support, use it as an opportunity to try and better yourself to stop it from happening in the future. They won’t always be there to get you out of sticky situations, so it’s crucial that you start to manage your finances better before it’s too late.