If you’re doing well financially, treating yourself occasionally or helping a loved one in need may be something that fulfills you and brings you joy. However, these actions can become problematic when they happen repeatedly and begin to take a toll on your financial life. To stay on track towards your financial goals while maintaining strong relationships with the people closest to you, it’s often necessary to set and maintain healthy money boundaries.

What Are Money Boundaries?

In general, boundaries define what you’re willing—and more importantly, unwilling—to accept from yourself and others. They provide a way to maintain your identity and wellbeing within your personal and professional relationships.

More specifically, money boundaries are the limits you set for your finances. In some cases, you may set financial boundaries for yourself. For example, you may have a personal budget that guides your spending each month.

In other cases, you may need to set money boundaries with others. This is especially true if you have people in your life who depend on you for financial support or relationships in which money frequently changes hands.

It’s important to note that financial boundaries aren’t the same thing as financial goals. However, the limits you set for yourself and others can play a major role in your ability to reach your financial goals and achieve financial freedom.

Why Are Financial Boundaries Important?

Among other factors, your upbringing and culture largely influence how you think and feel about money. For instance, if your parents had few limits around their finances, you may have difficulty setting healthy money boundaries yourself.

Setting financial boundaries is important for a variety of reasons. First, it helps prevent the people in your life from taking advantage of you. When family and friends know you have no limits when it comes to money, they’re more likely to ask for financial support.

Worse yet, some people may realize they can take from you without your permission. If you’ve ever loaned your credit card to a family member or coworker, you know what a slippery slope this can be.

Setting healthy limits is also important for your personal financial success. Indeed, you may have a responsible financial plan in place. However, if you’re constantly deviating from that plan to make impulse purchases or help loved ones, you’re likely not making much progress towards your financial goals.

Ultimately, setting and maintaining appropriate money boundaries is essential for your future financial success. Fortunately, if you’ve been lax about money in the past, it’s never too late to set limits for yourself and others.

How to Set Healthy Money Boundaries for Yourself

If you’ve never set money boundaries before, you may find it helpful to start by setting limits for yourself. It’s often easier to say no to yourself than to say it to others.

First, examine your personal financial habits. Are you disciplined when it comes to your money? Or do you have no idea where your money goes each month?

A quick look at your spending habits versus your income can help you identify potential areas for improvement. How much do you spend each month, and how much do you save? If you don’t have an emergency fund or retirement savings, that may be an indication that you’re overspending.

In addition, you may want to calculate your net worth. Put simply, your net worth equals your financial assets (cash, investments, and other property) minus your liabilities (debt).

Ideally, your net worth should increase over time as you accumulate wealth and pay down debt. If this isn’t the case—or your net worth is negative—you may need stronger money boundaries.

Once you’re aware of your current financial picture and habits, you can determine if you need to set new limits for yourself. For example, you may need to start tracking your spending more closely to avoid overspending. In some cases, you may want to take more extreme measures, like cutting up your credit cards.

You may also find that working with a financial advisor or coach is necessary. An experienced financial professional can help you set and enforce healthy money boundaries and financial goals, so you ultimately make better financial decisions.

Setting Healthy Money Boundaries with Others

After you’ve set clear money boundaries for yourself, the next step is to assess your money habits with others. In other words, how often are you giving or lending money to those around you without getting anything in return?

In some cases, giving or lending money to loved ones may not be a problem. For example, if your children are minors, their financial needs are likely built into your budget. Similarly, giving to your church or favorite charity may be a planned expense that doesn’t take a toll on your financial life.

On the other hand, you may have people in your life who are constantly taking from you in an unhealthy way. For instance, you may find yourself always treating certain friends to lunch, but they never return the favor. Or you may have family members who always need financial assistance but never seem to get back on their feet.

Setting money boundaries with others is necessary when their bad money habits or demands impede your financial progress. Many of us enable loved ones for far too long because we’re afraid to have a difficult conversation. Telling someone you care about “no” can also be guilt racking.

Still, it’s important to remember that failing to set firm boundaries with those around you doesn’t help you or them in the long run. If your goal is to be financially free one day, the best thing you can do today is learn to say no.

Communication Is Key

Lastly, be sure to communicate your new money boundaries to the people in your life who need to hear them. It’s always easier to stick to good habits when everyone knows the rules of the game.

For example, if your adult child has been living at home since they graduated college, they may not know that they’re taking a financial toll on your life. It may be helpful to have a calm discussion with them about how much they add to your monthly expenses. Then, you can let them know that you expect them to contribute going forward (or find their own accommodations).

At the same time, it’s important to be honest with others about why you’re saying no to them, whether it’s turning down a lunch invitation with a friend or telling a family member that you can’t lend them money. The more consistently you stand your ground, the less likely they are to test your limits.

A Trusted Advisor Can Help You Set and Maintain Healthy Financial Boundaries

If you find it difficult to stick to your new money boundaries, consider working with a trusted financial advisor. In addition to helping you set clear limits around your finances, an advisor can help you make better financial decisions and develop a plan that helps you achieve your financial goals.

Benchmark Wealth Management provides holistic financial planning services for high-net-worth professionals and retirees. To speak with a member of our team, please don’t hesitate to get in touch.

Can You Lose Your Federal Retirement If Fired?

Most often, federal employees who are fired from federal service do not lose the right to receive retirement benefits, but there are still some exceptions.

cently, many people are worried that they may lose their pension due to certain circumstances. Of course, this can be a big problem, especially if you don't plan to continue working after retirement. However, can you lose your pension if convicted of a felony? Can you lose your federal retirement if fired? Keep reading for more details.

Can You Lose Your Pension If Convicted Of A Felony?

First of all, you should know that according to The Public Integrity Reform Act, people who are convicted of a felony (related to their public service) may face reductions or even elimination of pension benefits. Since this law went into effect on November 13, 2011, it applies to those people who joined the Employees' Retirement System on or after that date.

Types of Life Insurance For The Elderly

Depending on your needs, you can consider options such as guaranteed issue life insurance, term life, whole life, funeral insurance and so on.

Nowadays, older people are becoming more and more interested in life insurance, but it can be quite difficult for them to find the right option. Most often this is due to the fact that life insurance policies become more expensive with age, but now there are still a fairly large number of acceptable options. Many insurers and insurance companies continue to work even with older people who are not in excellent health.

Credit Cards for Seniors

First of all, seniors should check their credit report, and it is also recommended not to close long-held accounts and use secured credit cards in order to build credit.

Is It Harder For Seniors To Get Credit Cards?

Older people, like everyone else, need credit cards. They need them to finance daily purchases, to buy clothes, to earn rewards toward vacation and so on. However, Experian claims that people born between 1946 and 1964 carried about 4.8 credit cards in the second half of 2019. You'd be surprised to know that this is more than any other generation in the report!

How Often Do Older People Get Into Car Accidents?

According to statistics, on average, 22 people over 65 die every day in car accidents, and 580 more are in need of medical care.

How Safe Is Driving After 65?

Of course, the car is an important part of people's lives even after retirement. However, drivers over the age of 65 face some problems while driving. In this article, we will look at some driving statistics that will give some insight into how age affects driving and what risks you may face on the roads after 65.

How Many Drivers Continue To Drive A Car After 65?

You will be surprised, but according to the latest 2018 Highway Statistics report from the U.S. Department of Transportation Federal Highway Administration, more than 45 million licensed drivers continue to drive at age 65 and older. In other words, one in five drivers on US roads is an elderly person.

Where To Find Loans For Seniors On Social Security

In addition to lenders and loan companies, retired seniors can get loans from non-profit credit unions. Moreover, they can also get help from local charities, government and FDIC.

Many people believe that life ends when they retire, but this is not true. Moreover, there are a huge number of retirees who enjoy this time, as they can still work, relax, travel and indulge in their hobbies. It is also worth noting that now it is not so difficult for retirees to find a job, so they do not have to be bored at home.

However, a retiree, like any other person, may need financial assistance in order to pay for medical treatment, home repairs, make a large purchase, and so on. If you are looking for a loan, Personal Loan is the best option for you.

Keep reading to find out more about this type of loan, what are its pros and cons and which one to choose for a particular situation and what other options you can explore to get money.

Most Demanded Jobs for Retirees

The following are 14 jobs that seniors can get right after retirement. Many older workers move into a new position before they retire, which is why these positions might pay less than what was earned during the financial peak of one's career but offer opportunities to socialize or help others in some way as well!

Landing a job in your 60s is not an easy feat, but there are certain industries and positions where you can find employment. Here's how old some professionals need to be before they're hired for various jobs based off data from the Urban Institute analysis of Health And Retirement Study Data.

"It turns out that rather than being consigned to retirement life, many of us 65+ workers have been able "to continue working throughout our golden years." The following list details common careers which allow those over-65 access -or aspiring seniors looking for a job".

Many Retired Americans Need More Than Social Security Can Cover

Retired Americans make up a considerable part of our population. Unfortunately, it sometimes feels like these are the people who are forgotten and left behind. We are talking about people who spend most of their lives working but then don’t have a level of income to afford even basic needs. It’s not right that our system allows for those who contributed over a lifetime to be left out once they retire.

Why Social Security is Not Enough

Social Security benefits are designed to provide for Americans after they retire. However, these benefits do not go far enough to ensure that recipients can meet their needs. The problem is that Social Security fails to keep up with rising costs. Right now, we’re facing the highest inflation rates we’ve seen in decades. Healthcare costs are continuing to climb. The minimal COLA increase just doesn’t cover those skyrocketing costs.