Family Money Management

Articles home management financial advisor to provide general information on costs, savings and investment. However, another part of the money management of the family is important, that is borrowing.

If you've ever borrowed money in order to understand family members, refuse to pay you, you may be related to the deterioration of personal relationships may lead to borrowing money between family members.

It helps, of course, family members should lend each other money, they can. At least one function of a family sharing of resources. In a complex of factors to borrow money, there are emotional ties are different from the emotional tension, to create will be subject to loan.

Overdue loans and sometimes the pressure is so great that permanent damage to family relationships.

The finance company or bank as collateral did not hesitate to go after their money, when someone in the defaulted loans, but they do not always see the people of the. The same can not be said for your family. Are you really ready to retrieve the electronic guitar for your son, if he defaults on your credit? Redemption is built around the house of your adult children, if they pay the outstanding mortgage loan?

Here are some tips, home management, in order to avoid the emotional burden of funding available from loans in the family structure.

1. Never lend money you really need (or want) - in other words, if you lend money to family members, you must be willing to see the money disappear forever, so that you continue your relationship with this person. If you are not willing to pay it can not lose. This must be the views of key financial management within the family.

2. Risk assessment - regardless of who the family members who want credit, you have to risk assessment. Why do you lend money to someone who had rejected the bank? The wisdom of the money back to their parents or adult children, this does not mean that lend money to you, or a history of poor financial management? Each borrower promises to repay you. How do you say. When they say "Oh, yes, I do not have to pay." You know you are not loans.

3. Never co-sign the loan - if you co-signed a loan, you are in the financial risk, but you do not have a guarantee of financial assets. If the default of loans from the bank on your loan, you will be responsible for balance. This is a shared responsibility of the signature. This is very dangerous there is no guarantee of financial liabilities shown with borrowed money. When you use the common loan, if your child is a car, you are responsible for loans, but the child has a car. They did not, apart from overseeing the loan, if your adult children standards.

4. To your adult children can provide - free, and regularly send birthday and holiday gifts. You can afford it, but you give free and unconditional release. This is a gift not a loan. If you say there is no loan application, you can not blame the cheap, or tight, your money, if you give up freedom. You have the right to say no, ask the loan, you have to give any commitment, obligation and responsibility to deposit money to your adult children or other family members.

5. A formal all loans, a notarized statement - assuming your spouse are convinced that you help your brother's wife. If you can not afford, if you think he has the ability and desire to pay you, you are ready, the money will never be returned to him, but an official government of the people (your brother-law costs). A formal agreement of this process, notary loan and the conditions outlined in the consequences of failure. Please note that the end result is always the same, so please prepare the money later (see the number of families on Article 1

These five rules of management of family resources to help you control your money and reduce the possibility of monetary damage family relationships.