My parents just told me they can’t pay my expenses anymore because they need to save for retirement! What do I do?
Don’t Panic
Ouch! You’re not alone. Parents are in a tough spot these days with trying to take care of their parents, save for retirement and help out their kids. You might be freaking out right now but think of it this way--they can either save for their own retirement now or move in with you when they turn 65. Do you really want them sleeping on your couch for 20 years?
Work Out A Plan
If your parents need to cut you off right away because of an emergency then you’ll have to cover all of your expenses immediately. No matter what keep making your debt payments and charge the rest if you need to. Missing a credit card or student loan payment or even paying them late will haunt you for years. If there is no emergency then come back to your parents with a plan of how to you’ll slowly cover your own costs. Make a list of your expenses every month (student loan payments, credit card payments, rent, food, phone, clothes and entertainment). Take a close look at what you can really cut back on. Work out a plan to be completely on your own in six months with your debt payments being the last thing they pay for. They’ll appreciate you taking their request seriously and you’ll be able to buy some time to adjust.
What You’ll Learn Will Help You
It may suck for awhile and you may even have to get a new job but at least you’re learning how to cope with a sudden loss of income. If you pay attention you’ll even learn how to spend better on the things that really matter to you. Being able to track your expenses and know where your money is going is the first step to becoming a millionaire. Most people who get rich spend it all and then some because they never actually keep track. Ask a millionaire how much they spend on private jets every year and they’ll rattle off the numbers. Know where your money is going and you’ll learn how to do more with it.
Our Ask the Expert for your money questions is Rebecca Schreiber, a Certified Financial Planner with Solid Ground Financial Planning. What questions do you have about handling your hard-earned money? Ask right now!
Lots of parents are financially strapped these days. Don't be disappointed.
Posted by: church lending | 10/21/2011 at 02:12 PM