Per Suze Orman, I’m not in a position to loan/give money

A couple of weeks ago I “gave” $400 to a relative (who doesn’t have a job).  I initially offered to assist this relative by giving $500 (she told me that wouldn’t be enough).  Yes, I was taken aback by this response.  Okay, you don’t have any money and the money that I’m offering isn’t enough?

Anyway, after giving her $400, I watched an episode of The Suze Orman Show on my iPod.  And,  if I had a conversation with Suze before I parted with that $400, Suze would have advised against it.  Why?

Because I don’t have an eight (8) month emergency fund.

Suze identified other items to consider before giving/loaning money such as do you have health insurance, do you have life insurance, do you have disability insurance, are you funding your retirement, are you saving for your children’s education, etc.  By time you review this list against your current economic status, who would have any extra money to lend/give to someone in need?  Maybe that’s the beauty of Suze’s advice: you need to take care of yourself first.

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