Financial Friction – What you can do to Avoid

We all are born in a country which is known for its glorious past, history, heritage, various religions, and amalgamation of various cultures.

But there is something more that leaves people across the globe intrigued which is our great family system that too A JOINT FAMILY.

This system is a close-knit bond that keeps us intact, secure and gives us a facelift when in crisis.

Check – Financial Infidelity – what to do

Financial Friction

But if we go into a little detail we find certain cracks and crevices the major reason of this friction is MONEY.

There are a lot of factors like ancestral property, gold, joint ventures that may appear quite systematic and simple but happiness in such families is more of a facade.

Two or more brothers involved in the family business may have similar thinking and understanding but as the generation changes and so does their approach leading to the difference in ideas.

Besides societal compulsions, buying gifts, spending lavishly on weddings etc could be some factors leading to financial frictions in the family, friends, or business associates. These were a few situations and very common circumstances that we all either confront or see around.

Do you know – More than 20% of the divorce happen due to financial friction. It’s not just because of less money or debt – sometimes more money means more problems. What about overspending, financial lies, etc.

Read – 6 steps to escape overconsumption

Prepare Yourself – There’s No Short Cut

Being a financial planner I would like to share a few tips to explain that prevention is always better than cure.

ASSERTIVENESS AND CLARITY

The day your kid turns into an adult by the law get him a separate account and keep all his financial formalities done separately.

Your son or daughter should be explained the importance of accounts, savings, and investing money with appropriate guidance. They should be politely and be explained to steer clear of bad debts and loans.

Must Read – 10 Lessons to teach your kids about Money

• If you and your spouse are both earning the role and responsibilities should be taken care of as healthy companions. With the help and assistance of people like us the distribution of income, investment plans, assets, and liabilities calculation should be planned.  
• This suggestion is both for the elders and the younger of the family. All the elders want to follow and make their kids live in an ideal system which is a myth. The distribution of property legally, making of will and fair distribution of sources of money not only keeps family together but also saves them of a lot of pain of court, disputes and helps them to flourish.

Read – Involve your spouse in Financial Planning

Plan your old age

We from childhood are taught about our future, career, and healthy relationships but we should be counseled and prepared for our old age also.

This would help us from being dependant on our children and we would not be a burden rather an asset for the family.

Read- Are you ready for your retirement?

Health a priority

Old age, death, and diseases are inevitable.

So we should be well equipped to handle and face any of them. All we need to cope with them is money which is a big factor that might lead to misunderstandings, stress, communication gap, differences and even fights among the family members.

So my dear readers as it is rightly said that money makes the mare go or might is right which is directionally proportional to the amount of money a person possesses. We all must have a fastidious approach and meticulous planning towards our future because whatever we do with our money is going to create either crisis or opportunities for us and for our family members.

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