In a weblog revealed a few years in the past, I stated that I used to be fortunate that my dad and mom did not ever ask me for cash.
In case you are new to my weblog or don’t keep in mind, right here is the hyperlink to the weblog:
How did AK obtain monetary freedom?
Nonetheless, I’ve additionally shared in my weblog lately that I used to be offering my dad and mom with monetary help.
Sounds contradictory to what I stated a few years in the past?
Nicely, my dad and mom did not ask me for monetary help.
The factor is that if we’re blessed with good dad and mom, they often attempt to not burden us, their kids.
They may simply tighten their belts or make some pocket cash performing some half time work.
If we’re good kids, we would not need to see our dad and mom try this.
They’ve labored to offer for us kids until we grew to become unbiased and, of their golden years, it’s our flip to ensure they’re a minimum of financially comfy.
I imagine that that is the least we are able to do as kids.
Anyway, the catalyst for this weblog was one thing I learn on-line.
The creator requested how a lot cash did individuals give their dad and mom?
He stated he gave his dad and mom 10% of his wage month-to-month.
The quantity was $400 a month.
The running a blog bug bit me after I noticed that.
If the creator’s dad and mom have been comparatively properly off and he was simply giving them a month-to-month allowance to specific his filial piety, I believe his methodology could be OK.
Sure, setting apart a hard and fast share of his month-to-month pay to provide to his dad and mom.
In any other case, it appears fairly arbitrary to me.
It is like saying,
“Hey, do not say I do not provide you with any cash, OK?”
Do not get me flawed as it’s higher than not giving any cash in any respect.
It will be extra significant, nonetheless, to search out out what our dad and mom’ wants may be financially and if we may do extra to assist.
Additionally, merely giving dad and mom cash may not at all times be the easiest way to assist them.
Serving to them pay recurring payments may be a greater thought, particularly if we need to ensure that the cash is getting used correctly.
Some individuals are simply not superb with cash.
Each the giver and receiver would have peace of thoughts this manner.
Hopefully, not having to fret about recurring bills, our dad and mom would have enough sources of their very own to handle their every day bills.
In any other case, we’d have to offer monetary help to defray their every day bills too.
Then, it may additionally be a good suggestion to put aside an emergency fund for our dad and mom, particularly if they don’t have one.
Issues do go flawed like they often do and surprising bills do pop up.
Being ready for a wet day or, worse, a storm is rarely a foul thought.
So, what about me?
Nicely, I do not put aside a share of my passive revenue to provide to my dad and mom.
I additionally don’t give them cash month-to-month however I do give them comparatively beneficiant pink packets on Father’s Day, Mom’s Day and their birthdays.
That is the one money I give them.
I can hear some very long time common readers asking questions now.
Sure, in a weblog which I revealed in August 2022, I revealed my up to date price range.
In that weblog, I stated I might be setting apart $48,000 per 12 months from my passive revenue to offer monetary help to my dad and mom.
Many of the cash would go to serving to them pay recurring bills and the most important ticket objects are H&S insurance coverage premium, property upkeep and property taxes.
Up till lately, recurring bills additionally included mortgage funds.
Fortunately, the ultimate housing mortgage was absolutely paid in 2H 2022 and I paid the authorized charges to discharge the mortgage as properly.
To be trustworthy, $48,000 per 12 months has fairly a cushty buffer as the quantity I put aside for parental help was $40,000 per 12 months earlier than.
So, what in regards to the quantity in extra of annual pink packets and paying recurring bills for them?
Nicely, I may improve the scale of their pink packets henceforth.
Nonetheless, being a worrier, a lot of the extra would go into the emergency fund I’ve arrange for them.
I’ve blogged in regards to the significance of getting an emergency fund and the way mine was large enough to cowl 24 months of routine bills not only for myself but in addition my household.
Nonetheless, I’ve not blogged about how our emergency fund also needs to maintain tempo with inflation, if my reminiscence serves me proper.
If we now have arrange an emergency fund just a few years in the past and if we now have not checked out it since, possibly, it’s a good suggestion to test whether it is nonetheless as strong as earlier than.
In case you are new to my weblog or want a refresher, learn:
So, how a lot cash am I giving my dad and mom in share phrases?
Nicely, this quantity goes to be completely different from 12 months to 12 months since my passive revenue goes to be completely different annually.
My passive revenue for 2022 totaled S$205,999.
$48,000 is about 23% of that whole.
To make sure, I’m not telling anybody how a lot cash they need to give their dad and mom.
I’m undoubtedly not saying that I’m 10x higher than somebody who offers $400 a month or $4,800 a 12 months to his dad and mom.
We most likely have completely different circumstances and, in some circumstances, fairly probably, very completely different circumstances.
Nonetheless, as an alternative of asking how a lot cash are you giving your dad and mom month-to-month, maybe, the creator of the article which was the catalyst for this weblog needs to be asking are you giving your dad and mom sufficient cash month-to-month?
I’m going to take shelter now.
Simply speaking to myself, as standard.
1. Inflation, passive revenue and my price range.
2. 4Q 2022 passive revenue.