Debt Consolidation Tip: Protect Your Savings

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Debt Consolidation Tip: Protect Your Savings

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The day you have money in savings will be great day.  

Protection from emergencies. Cash flow problems a thing of the past.  Large purchases paid with cash.  Once you have completed your debt consolidation program you can really stack that savings account.

Yes, it will be a great day.  But that savings account will actually bring on a new set of problems that you probably haven't had to deal with before.  

When you have savings, often time's people around you might feel that you should be helping them out with your bankroll.  

They will say things like "Well, you have the money, you should help me out!"  

What should you say?  It's tough and if you have never been in this situation before it can be confusing to know what to do.  

There are a few things to consider.  

First, think about yourself.  Can you reasonably help without putting yourself in a bad spot?  If you think "ugh, I wish they hadn't asked me for money!" then you shouldn't give them any.  It's not selfish to make sure that you are in a good position before helping others.  

The next thing to consider is if giving them money is truly a help.  I can "help" my kids by tying their shoes for them everyday but when they are 18 and don't know how to tie their own shoes my "help" will have actually hurt them.  Consequences are necessary to learn and grow.  If you deprive someone of their consequences they won't grow as a person.  

So even if you can help them that do not mean that you should.

Giving hardworking mom money to pay a doctor bill is different than giving your lazy uncle money to pay his cable bill because he spent his money at the bar.  

Lastly, give... don't loan.  Do not loan money.  If you can't afford to give the money away and never see it again then say no to the request.  Period.  End of story.

Think of this, people who have never saved any money don't understand how money gets into savings.  They often think that money is saved after you have paid bills, bought what you wanted to buy, and done what you wanted to do. Only then do they save money, which is why they have never had money saved.  They think money in the bank is "extra" money.  It gets there through luck... or magic. 

You know better.  You know to pay yourself first.  That means you might not get to buy or do something you wanted.  It didn't happen by magic or luck.  The money got there through hard work and sacrifice.  You didn't have $1,000 in checking and think to yourself "Well, gee... I just can't think of one single thing to spend this money on.  I guess I'll just put in savings until I see something I want to buy."  

Unfortunately that's what your friends and family might think about the money you have in savings.  That you want to spend it, you just can't seem to think of anything to buy.  So if they are in a tight spot they just can't fathom why you won't help them.  "You have the money!" they scream.  

They feel entitled to your money.  

You might feel very guilty for not helping, especially if you have helped them out quite a bit in the past.  But remember that it's not their money, it's yours.  You could spend it on yourself if you wanted to.  You chose not to.  You chose not to spend it on yourself and you can choose not to spend it on them.  

Your savings account protects you and you must protect it.  Your needy friend will find someone else to help them.  


Guest personal finance blogger and expert for leading provider of debt relief, careone services, inc. Ashley Barnett

As a budget coach and financial author Ashley Barnett spends her days (and nights!) giving everyday families the tools they need to succeed with their money.  Her passion for budgeting is fueled by watching people get control of their money and turn their financial lives around.  Check out more resources and advice on Ashley's blog, Money Talks Coaching.


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  • It's like the old adage goes, 'charity should start at home'.. IF you're struggling for money, then you should focus on getting yourself out your predicament & freeing up some more cash for necessities..  Only then can you be in a position to help others - who truly need help!


  • Very informative! I will definitely recommend these tips to all of my friends and family.

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