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Sister Financial Issues

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  • Sister Financial Issues

    Advice please.

    I come from hardworking middle class family – two parents and a
    sister in her early 40s. My sister was downsized from working in the financial industry after 18 years at her company early last year. She is also two years divorced with 2 kids and home that she bought out from her husband.

    Here’s the story – no sooner than my sister gets laid off – she proclaims that she will work at starting a business. (Normally I would never chime in but because I paid for her divorce (to the tune of $50K), I suggest that perhaps she should make a go at it on the side while she seek a fulltime job because the kids are small and she now has a lofty mortgage to pay.) We argue on and off over much of 2008 and I tell her she is putting all her eggs on one basket – relying on the possibility of a wellness business to gain income and most intelligent folk know that is not wise to do.

    In addition, my sister makes futile attempt to enlist the help of my mom with her kids – and that never comes to fruition. My personal take is that my sister should not have used the telephone to engage my mother in such a request – she should have used face to face visit,
    filled with consistent, repeated kindness. (Our mom is enjoying the bliss of retirement after 40 years of 6-7/day week working 12 hours/day as a nurse.) To make things worse – my sister’s son suddenly develops a recurrent eye ailment requiring numerous visits to doctors.

    So now 18 months have passed, my sister has earned no income from her business and has cut communication from our mother from their arguments over differences.

    What I come to learn in June 2009 makes my head want to explode. I learn that my sister was given $40K from our mom – in Dec 2008. – the same person my sister has cut all communication with. My sister is close to foreclosure, months of innumerable unpaid bills and not one moment spent looking for a job. She is insistent about needing childcare and starting a business. I could not even keep my composure – I told her – after stealthily getting $40K out of our mother – you should have groveled, begged, pleaded and did whatever you needed to do to get her to help with the kids.

    Most certainly unwise was for her to let 18 months go by. Her excuse is her son’s eye condition and lack of childcare and she blames our dad for suggesting that she pay down her mortgage (using her severance). She needed to do her homework to decide if she could pay down her mortgage and no one knew the reality of her finances till recently. I’m dumbfounded that common sense would not have led her after few initial weeks to secure situation as far as her children are concerned. To her, the whole family is evil and we somehow conspired to seeing that she fails. I told her she did it easily all by herself by not planning well and not having income for 18 months.

    In addition I am single, no kids, no husband and there is this resentment my sister has towards me as if I should continue to fill the gap or pay for her mistakes. I told her at $100K of help over the years - the family has gone above and beyond help and she needs to make better decisions.

    Thoughts?

  • #2
    Well, I would definitely not give her any more cash.

    If needed, I would provide groceries because kids are involved.

    I would help her sell her items for cash, if the utilities are not current.

    I would go with her to a real estate agent(s) office to look at selling her home. I would also support her in getting any help from professionals of any kind.

    As my suggestions indicate, I would not give her any more money. She has been enabled. She has not been an adult. She doesn't get to be treated like an adult. If she needs advice, help her get it, preferrably from third parties because she's not listening to you or other family. You are correct, she needs to make better decisions.

    She needs to be applying for jobs everyday. She isn't cut out for owning her own business. People who do work night and day to make it work. From what you say, she's not trying at all. Sufficient income is key to getting back on her feet.

    Good luck!
    My other blog is Your Organized Friend.

    Comment


    • #3
      Originally posted by questions View Post

      $100K of help over the years - the family has gone above and beyond help
      Your family harmed your sister by enabling her. If I were your sister, I would sell the house, would politely ask my family to watch my kids while I work my 3-4 part time jobs, and spend rest of the night sending out resumes.

      Comment


      • #4
        You really cannot help or prevent another person from sinking or swimming. At some point in time, they either will or they won't. It sounds like you need to distance yourself a bit. First, her relationship with your mom should only concern her and your mom. You should find a way to become completely oblivious about this as it isn't your place or business and it will simply drive you crazy. Your mom and her can negotiate their own relationship if they are both of sound mind. And, if your mom gives her money, it is her money to give so you need to step back and not allow this to become a bone of resentment or contention.
        You cannot tell your sister how to live her life. She may ask for your suggestions and you can give them. But, step back again as she is going to do what she pleases. So, you need to make it clear that you are not going to fund her lifestyle whatever she chooses. You are not her bank. She may lose her home which is what should happen if she really can't afford it. It would be far better for her to live in an apt she can afford than a home that she cannot.
        BTW, why have you given her such a large amount of money? A few hundred bucks to a relative to help cover a few bills seems reasonable but you have funded her with an extraordinary amount.

        Comment


        • #5
          Have you ever watch the show Intervention? It's about drugs, but your sisters spending seems to be a type of addiction. And by you giving her money, you have been enabling. If you want to help her still, I would suggest getting professional help to help her with her finances so it's coming from a third party (a personal finance specialist) and not family.

          Comment


          • #6
            You don't have to continue a relationship with her just because she's your sister. Sometimes we have to just acknowledge that another person (related or not) is damaging to our well being and move on. To me, life is simply too precious to waste on someone who clearly has a pattern of irresponsibility and blaming going on. Does she bring as many or more positives to your life as she does negatives?

            I'm sure you and your family meant well, but I have to agree that you've all made the problem worse by giving her money, thus taking away from your sister the opportunity to make it through life by her own merit.

            Good luck to you. Families can be challenging.

            Comment

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