Instead of giving her a fixed amount every month, you could pay her utility bills or health insurance premium.
Know your financial limits You may be committed to helping your mom, but you cannot do so if your own finances are not in order. The two goals you should not jeopardise at any cost are building an emergency fund and retirement kitty.
Neither will you be able to avail of any loan in old age. So give top priority to your retirement corpus.
5 practical ways to help your mother financially without straining your own budget
Instead of paying her, pay for her It may be possible that your mother is not comfortable taking financial help from you in the form of regular handouts. So, instead of giving her a fixed amount every month, you could take up the responsibility of paying her utility bills or health insurance premium.
How are we going to pay for that? But what if a car repair was just an inconvenience? Instead of worrying, you pay the bill without thinking twice.
You could also buy her medicines or pay for other medical expenses, help her with the chores that require long commutes, or sponsor her holidays. It is also a good idea to gift her home appliances, electrical gadgets or furnishing overhaul that you know she requires.
Do not, however, lend money to her as loans are considered a big reason for friction within families. Help her to make a will One of the best ways to help your mother with her finances would be to keep her paperwork in order. This can include monitoring her investments, ensuring the filing of tax returns, timely payment of premium for health or vehicle insurance, renewing of post office schemes, payment of bills, etc.
This will not only reduce the chances of penalties and fines, but also make it easier for her to manage finances. Another important step you should take is to have her make a will and a living will.
The former will enable the distribution of assets according to her wishes, while the latter will help implement her right to make money without straining with dignity. Get her to meet a financial planner Before you decide to provide succour to your mom, it may be prudent to assess her financial health and check the extent of help that is actually required.
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If she is not comfortable discussing financial matters with you, it may be a small price to pay to hire a financial planner. An analysis will not only provide a clear picture, but a financial plan drawn up by an objective third person to cater to her needs will convince her about the course of action to be taken.
On the basis of this plan, you can decide how much contribution you should make. This will also help optimise her own financial resources and investments, and possibly reduce your contribution.
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Have a separate savings account If you do want to provide financial aid on a regular basis or build a corpus for her long term care, make money without straining good strategy is to make it a part of your own goals and put aside the money every month for it. In fact, you can have a separate savings account, which will help in three ways. One, it will give you a clear idea about the money you can afford to give your mother.
Twitter Peggy James is a CPA with 8 years of experience in corporate accounting and finance who currently works at a private university, and prior to her accounting career, she spent 18 years in newspaper advertising. She is also a freelance writer and business consultant.
Two, a separate account means it will not interfere with your own financial outgo or planning. Finally, it will help you avoid any conflict or objection by your spouse over the contribution being made to her. A better option is to have a joint account with your mother so that both of you can access it. Also Read.