Normally I do not share a client mail or a distress mail with all and sundry – however I have removed the numbers and here is an anguish from a girl who loved her late father, but realizes the financial mess that the family has got into. Since she has written well, I thought I will share it with all of you…

This is the shrill anguish of a 21 year old girl who has a 24 year old sister. Her mom invests money with people who borrow cash and pay interest (no documents). Her father invested Rs. 7 lakhs in a business with a “friend” and that is lost. Father did a business which had no succession plan. He had no life insurance. I have still not asked whether they have any medical insurance. I am just in the process of getting to know this kid. I hope I can help the family. And that they take the help. Here is the problem in her own words:

“Before I start, let me be clear that this write-up is not a plug for sympathy! I am just intending to share – “HOW BAD CAN IT GET?” – and how can I get out of this mess, asap?

It’s been almost a year since my dad passed away. My mom is 43, while my dad was 54, when he left us. And it was a love marriage!

I am completely in love with my family, and I think, the only reason for our financial crunch is – “LACK OF KNOWLEDGE”. With some of the experts around, now I know how simple things can help in a big way.

I believe human beings were born to procrastinate. That is the reason we have deadlines and deadline extensions. Unfortunately, we thought, we have unlimited extensions with planning of our finances.

Papa always spent every penny of his income on us, for all the avoidable things we demanded! But this did not provide my family with any buffer to protect us from a financial emergency. We do have savings, but they are just not enough! Too many bills, not enough money! Problems never disappear, but the money does!!

I don’t remember the last time I sat down surrounded by all of my personal and financial documents and took stock of my overall financial situation, including reviewing spending, savings, future goals, and insurance.

Key issues of my family:

*No planning
*Delaying saving
*Loans
*Business partnership problems
*Overspending
*No insurance: After all the problems, I have learnt one very important insurance lesson – “Don’t wait for a tragedy to strike to have the right insurance coverage.”
*Emotional decisions
*SADLY, the list is endless!!

Help!