Comment from Reader Slinky:
My mum recently asked me for a loan (and isn’t THAT weird?) and I felt really bad to say no. If I had the money and felt secure, she’s one of the few people that I’d give that money to in a heartbeat. But the economy is iffy, my job was looking rocky and the only spare cash I had was my small emergency fund. I also knew she didn’t absolutely Need this money. And in the end, I was right, she didn’t need it. She found a way to make things work on her own. (Which made me really proud of her!) It was an interesting conversation and an interesting experience to say the least.
I am certainly no stranger to this situation. A few weeks ago my sibling asked me for a loan at an unspecified amount. I was feeling flush so I said yes. But in the end I didn’t have to loan the money. Now that I’m moving for a 2nd time in 2 months, I’m not feeling quite so flush. So it’s making my Fiscal Challenge pretty rough in August.
My mom called asking for some help on her roof repairs. Several years ago, I promised mom I would help out with the house. I have already helped her buy new windows and this year seems like a good year to do the work because contractors are desperate for work. I’m proud of my mom because she shopped around several bids and the guy who did the windows came in under $7K for the job. (He’s also done the windows and roof for a neighbor and some other people we know. But you should always get a few estimates anyway.)
Right now I can only commit to helping her with $2K because I also need to scrape up cash to move into the rental my boyfriend and I are taking. It’s a bit of a mess right now.
The strategy is to:
1. Knock down my 401k contributions in August.
2. Take a $4k Balance Transfer on one of my credit cards.
3. Take my renter’s security deposit and rent and push it towards my higher rate interest credit cards.
4. Pay off all the high rate interest balances before Christmas.
This really kills my 2009 Goals. But goals are only aspirations and my mother’s roof has been needing a fix for a while. (Try something like 2 or 3 years. I hate to see a shingle out of place and I believe there is a slight sag underneath which will require a tear-off of the whole thing.)
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Dealing with money and friends and family is a tough situation. I’d probably do the same as you, especially since it’s mom involved.While it might be a squeeze on you finances, it’s not wiping you out.
Also she’s investing it into the house. All depends on what the money is needed for.
Hey, Thanks for featuring my comment.
It’s always tough to handle family and money. Your mum sounds like she’s a smart lady though. I find that I’m much more inclined to help people and to do it happily if I know that the person is being responsible with it. I don’t mind helping people, but I hate bailing people out of a hole they dug themselves.