Do you give dad and mom sufficient cash month-to-month?

In a weblog printed a few years in the past, I mentioned 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 bear in mind, right here is the hyperlink to the weblog:

How did AK obtain monetary freedom?

Nevertheless, I’ve additionally shared in my weblog in recent times that I used to be offering my dad and mom with monetary help.

Sounds contradictory to what I mentioned a few years in the past?

Effectively, my dad and mom did not ask me for monetary help.

I supplied.

The factor is that if we’re blessed with good dad and mom, they normally attempt to not burden us, their kids.

They could simply tighten their belts or make some pocket cash doing a little half time work.

If we’re good kids, we would not wish to see our dad and mom do this.

They’ve labored to supply for us kids until we grew to become impartial and, of their golden years, it’s our flip to ensure they’re a minimum of financially snug.

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 writer requested how a lot cash did individuals give their dad and mom? 

He mentioned 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 once I noticed that.

If the writer’s dad and mom have been comparatively effectively off and he was simply giving them a month-to-month allowance to specific his filial piety, I believe his technique can be OK.

Technique?

Sure, setting apart a hard and fast proportion of his month-to-month pay to offer 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 mistaken as it’s higher than not giving any cash in any respect.

It might 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 won’t at all times be one of the best ways to assist them.

Serving to them pay recurring payments may be a greater concept, particularly if we wish to be sure 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 fashion.

Hopefully, not having to fret about recurring bills, our dad and mom would have enough sources of their very own to handle their day by day bills.

In any other case, we would have to supply monetary help to defray their day by day bills too.

Then, it may also 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 mistaken like they often do and surprising bills do pop up. 

Being ready for a wet day or, worse, a storm isn’t a nasty concept.

So, what about me?

Effectively, I do not put aside a proportion of my passive earnings to offer to my dad and mom.

I additionally don’t give them cash month-to-month however I do give them comparatively beneficiant crimson 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 printed in August 2022, I revealed my up to date price range.

In that weblog, I mentioned I might be setting apart $48,000 per 12 months from my passive earnings to supply monetary help to my dad and mom.

Many of the cash would go to serving to them pay recurring bills and the largest ticket gadgets 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 totally paid in 2H 2022 and I paid the authorized charges to discharge the mortgage as effectively.

To be trustworthy, $48,000 per 12 months has fairly a snug buffer as the quantity I put aside for parental help was $40,000 per 12 months earlier than.

So, what concerning the quantity in extra of annual crimson packets and paying recurring bills for them?

Effectively, I may enhance the dimensions of their crimson packets henceforth.

Nevertheless, being a worrier, many of the extra would go into the emergency fund I’ve arrange for them.

I’ve blogged concerning the significance of getting an emergency fund and the way mine was sufficiently big to cowl 24 months of routine bills not only for myself but additionally my household.

Nevertheless, I’ve not blogged about how our emergency fund also needs to preserve tempo with inflation, if my reminiscence serves me proper.

If we have now arrange an emergency fund just a few years in the past and if we have now not checked out it since, perhaps, 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:

Emergency fund.

So, how a lot cash am I giving my dad and mom in proportion phrases?

Effectively, this quantity goes to be totally different from 12 months to 12 months since my passive earnings goes to be totally different annually.

My passive earnings for 2022 totaled S$205,999.

$48,000 is about 23% of that complete.

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 provides $400 a month or $4,800 a 12 months to his dad and mom.

We likely have totally different circumstances and, in some instances, fairly presumably, very totally different circumstances.

Nevertheless, as a substitute of asking how a lot cash are you giving your dad and mom month-to-month, maybe, the writer of the article which was the catalyst for this weblog ought 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 regular.

Associated posts:
1. Inflation, passive earnings and my price range.
2. 4Q 2022 passive earnings.