4 Tips on How to Deal with a Broke Friend

Broke friends that don't know how to manage their money properly are not your problem. You shouldn't feel that you have to bail them out of a money jam that they got themselves into in the first place. Here are four tips on how to deal with a broke friend.

Don't Pay For Everything Thinking It Will Take Care Of The Problem

Anybody that has been bailed out of a money jam will always be thinking that they have someone to fall back on. Show your friend that they need to spend only the amount of the money that he or she currently earns and not charge everything to a credit card since it only creates more debt. Medical problems and other issues can happen to everyone at one point or another in life so keep that in mind. Things happen that are out of our control sometimes in life that leave us in the red no matter how much money we have due to being frugal.

Prepare Budget For Them

You can help them out by getting together with them to prepare a budget. A budget will show them how much income is available each month and how much they can spend in each area in order to pay bills. The budget is the best way to help a friend that is always broke due to money issues.

Don't Give Them Money Unless They Work For It

Do not give a friend money to solve their problems since this type of behavior only enables them to do it over and over again. Only give a friend money when he or she works for you to earn it such as cleaning your house or some other work. You want your friend to understand the importance of a dollar by earning it when she or he asks you for money.

Don't Suffer Due To Helping Friend

If you make the decision to help a friend out money wise due to medical problems or other issues that came up in their life then make sure to not suffer. You need to take care of yourself first and not suffer elsewhere in your life before you help a friend. When you write a check for money then make sure that you are not going to be left broke yourself.