If you have ever flown on an airplane you have heard the safety speech given before takeoff.
Make sure to buckle your seat belt.
Locate the nearest exit.
In the case of an emergency put on your own oxygen mask before helping those around you.
Normally when you hear this you are still jockeying for elbow space. You could care less and just want to make it through the upcoming flight.
However, the last tip to help yourself before others can be applied to all aspects of life. When it comes to personal finance it is extremely important to help yourself before you can help others.
Finances are not Perfect
If you have any sort of life experience dealing with finances, you realize quickly no one is perfect. Most strive to do the best they can and then life happens, and you land where you land.
So, it is no surprise that many of those you love and care for might run up against money issues. The problem is that financial resources are limited. Extremely limited if you yourself are just getting started in life.
So, what do you have to do to get your own financial footing?
Learn to say no!
Saying no is tough.
It is a life long skill to be able to say no. Yet it is so much more important than most of us realize.
Saying no hurts. It is unnatural and feels mean. The easy route is to say yes to everyone avoid conflict and do it all.
Over committing yourself in life will wear you down and spread you thin. Your financial life is no different. Eventually you will find that if you try to help everyone your own finances will begin to crumble.
Position Yourself First
Most people are not good with money, duh! They earn it, they spend it, rinse and repeat.
You on the other hand are actively working to understand money and better your life. You are reading a personal finance blog after all.
So, get your own financial oxygen mask positioned first before helping those around you. If you focus on building wealth over time your money will become abundant. You will no longer need all of the money you are earning.
This is when it gets amazing!
Only an asshole would want to spend every dollar ever earned on themselves. Change your life and then change the lives of those around you.
Teach them how you have gotten to where you are and give them tips on how to do the same. If you have invested well over time you will be able to pass down techniques and money to your family. This will be a massive help to all those who come after you.
Don’t be Scrooge McDuck
It is important to focus on yourself first and foremost. If you are not solid you will not be able to help others when it counts.
However, this does not mean you can’t lend a helping hand along the way. If you have your basics covered, you can help family and friends in small ways and scale up over time.
This is a simple concept.
If every time you make money you give it to family or friends who need it and they spend it then it is gone! Instead build a pile of investments that pay you every month, quarter, or year. Then use the earnings and change the lives of those around you.
Let your tree keep growing and spitting out more earnings then pass the tree to the rest of your loved ones.
Make a lifetime difference in the lives of those you love instead of a one-time deposit!
What Are Your Thoughts?
- How do you financially help friends and family in need in your life?
- Have you had to say no to helping someone in the past?
- What level of giving do you feel you should provide to your loved ones?