Lending Money To Your Kids
Our guest for today is Ray Jaramis (@RJFinLife), a renowned financial manager with Treysta FinLife, an advisory business, and the co-founder of XY Adviser. He is an award winning financial planner and he helps people to have a good relationship with money. We talked about the importance of learning and the current generation’s financial challenges. Should you lend money to your children? Are you doing them a favor or setting them up for disaster? We answer all that and more here in this episode of “Get to the Contest”!
Get to the Contest Takeaways!
Ignore the “barbecue talk”
It is important to recognise the value of a good advice and a great adviser. Often, the barbecue talk we have with friends are distractions and disasters waiting to happen. Seek advice from people you look up to, who are expert in their own field and most especially, someone you trust. Make it a goal to learn every day, and that you surround yourself with people smarter and more experienced than you are. Keep learning because when you stop, you’ll soon be overtaken and irrelevant.
Do the right thing by your children.
You love your children and you want the best for them. Of course. But are you sure you are doing the right thing when it comes to loaning them money? There are a few simple questions to reflect on before imparting them with the responsibility of a loan. Are they responsible enough? Can you, as the lender, afford it? Can the current circumstances of your children enable them to afford to pay the loan? These are just a few questions you must be able to answer before taking this big step. If you skip all the questions, you might be doing your children more harm than good.
With every financial decision in your career and life, you have to take the extra mile in making sure you are protecting yourself. Make sure all transactions are transparent and that there is a process in all that you do. Leave a paper trail and seek advice from the experts when you do a big financial decision.
Ray Jaramis’s Get to the Contest:
"I think I'm just conscious of not going with the herd, so to speak. Often, I think it can be valuable if you take a step back from what you're doing in your daily life, and maybe just challenge yourself on what your career path is.
The critical points in my career have been when I've taken a step back, and had a bit of a think about what I'd ideally like with my work, and where I'd like to see that headed in the future.