“Setting financial limits in the long term will help you maintain stability and achieve your financial goals.”, — write: www.unian.ua
Setting financial limits in the long term will help you maintain stability and achieve your financial goals.
How to refuse relatives to borrow money / ua.depositphotos.comLending money to loved ones can strain your relationship if boundaries are not set. According to a 2024 study by Bankrate, about a quarter of people who borrowed money or covered group expenses with the expectation of getting paid back said it had a negative impact on their relationships.In order to avoid financial difficulties and still maintain the relationship, it is important to set clear boundaries. “Decide if you can afford to give that money. If not, you may not be able to help. You can’t risk your financial situation to help someone else,” advises Aja Evans, a certified financial therapist.
Often, friends or family can see what you’re spending money on, such as vacations or shopping, and misjudge your options. But only you know your finances. “Just because you have money in your account doesn’t mean you can give it away,” explains Evans.
How to set boundaries and overcome guilt1. Give what you can afford.
Saying “no” right away can be difficult, especially if you’ve already lent money to this person. Try to allocate an amount that you feel comfortable giving, even if it is less than what is requested. For example, if a friend is asking for $100, but that would put a significant dent in your budget, offer $20 or $30.
“It’s a healthy trade-off because you’re helping as much as you can without putting your finances at risk,” says Evans.
2. Cope with guilt
Rejection can be guilt-inducing, even if you’ve set boundaries correctly. To help ease this feeling, record your financial goals and the reasons you’re pursuing them. If your goal is to increase your savings, writing it down will serve as a reminder for times when you might feel guilty.
“Make a plan and regularly remind yourself why you’re sticking to it,” advises Evans. This will help you stay firm within your boundaries.
3. Create strategies to reduce stress
Sometimes it’s hard to say no, especially to loved ones. If you feel stressed after the conversation, make a list of activities that will help you relax – for example, sports, cooking or taking care of plants.
Setting financial boundaries may not be an easy step, but in the long run, it will help you stay stable and reach your financial goals. “It is difficult, but important. Yes, it is unpleasant now, but you will thank yourself later when you can provide for your own needs,” the expert concluded.
You may also be interested in news:
- Received approval from NASA: an expert named a plant for the bedroom that will help you fall asleep
- 10 most difficult tongue twisters for adults: not even easy to read
- What to say about yourself at an interview: an expert gave useful advice