Ever had to help your parents out?

Kline12

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This post is more of a rant out of sadness than anything so bare with me, I'm a little emotional today. But, have any of you guys ever had to help your parents out financially? My parents are some of the hardest working individuals I've ever known; especially my dad. He is an utter inspiration with his work ethic and drive, and I'd like to say that a lot of those traits were carried over into myself and my 3 siblings.

Growing up, we never had a lot, but always had just enough. I remember when my dad started his insurance agency, he had a desk in our basement where he worked from. Dial up internet, a horrible computer, and a Polaroid camera he used to take pictures of the houses he would insure. Now 20 some odd years later, he owns the building he works from, and has 5 employees. He has since opened up a 2nd business, a gym, and it hasn't been quite as successful as he initially anticipated; but it has only had the doors open for right at a year.

Over the years and especially as I got older, I started to notice just how 'not well off' we really were. My dad always seems to be struggling. He has ALWAYS kept us out of the financial loop, and has bared that stress on his own. Well last night, I logged on to facebook to find a post he made listing almost all of the big items he owns for sale, with the exception of the house. My heart dropped to my stomach and I felt helpless and sick. The reality of just how badly my parents are struggling hit me pretty hard for the first time ever.

I am 1 of 4 kids. I have an older sister (26), then me (22), a younger sister (21), and a younger brother (20). Both of my sisters have a child to care for, and between the 4 of us just starting out in life, we barely have pots to pee in. I was doing ok for myself when I was living in Texas for 3 years, but couldn't stand the distance and being away from my family, so I moved to South Carolina to be close to them again. My job here barely allows my girlfriend and I to get groceries and pay rent each month. We all try to help each other out as much as we can, but most of the time all we can do is pray for each other and give emotional support.

My youngest sister started a group message this morning with all of us "kids" in it regarding the for sale post my dad made last night. We are trying to brain storm ideas to help them out in any way we can. I was wondering if you guys had any stories where your parents were in a similar situation, and what you did to help.

I apologize ahead of time for the completely random and disorganized post. The past few days have been pretty stressful and mentally draining, and last night into this morning hasn't made it any easier.
 
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Zemedici

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Oh man, i'm sorry to hear that.

Quick question - if he owns the building he works in, his business is now successful yes? Why is he having to sell things to make ends meet?

My dad has always taken care of us, and we've had anything we've ever needed. My dad carries probably 80% of the financial burden, and has since instilled that same value in me. He taught me that you are supposed to take care of your woman, and make sure she has anything she needs. They need to appreciate what you provide, however.

There's gotta be a way - can your father sell the gym? Would be some freeflowing cash.
 

DriftwoodSVT

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Not yet, but probably soon.

I recently found out my father (72) has gone through his entire 401k making some very bad financial decisions over the past couple of years. I've had to get his monthly bank statements and help him start cutting costs.

For example, he was paying $374/month for Direct TV, Internet and his AT&T cell phone. He had a 50 MB download for doing nothing other than email. Reduced his internet down to 6 MB, trimmed his DirectTV package way down and moved his cell phone under my plan as an additional line. So that went from $374 a month down to $125 or so.

Even so, he still wastes money on things. He bought a lot of unnecessary Ethan Allen furniture for his 1 bedroom apartment. A dining table, chairs, china cabinet, a bunch of entertainment center pieces. He sent in a ceramic bald eagle to get it bronzed. Just lots of really bad money decisions.
 
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Kline12

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I wish it were as easy as just selling the gym, but I'm not sure that it is. I know he sold a portion of the business before he ever got the doors open because the equipment showed up way too late, and he couldn't open for business in time. I also know that this tax season was absolutely terrible. I forgot to put this in the original post, but last weekend he mentioned to me that he was having to come up with $25,000 in taxes by next (now this) week. His insurance company isn't doing bad, but it's paying to keep the gym open too until he has enough members to break even each month. It's like a double edge sword.

He admitted to my mother that he regrets opening up the gym, but now hes in too deep to turn back. I don't know many more details, but I do know theres a lot more going on than just all of this. Idk. All I want is to see my parents happy and stress free for once.
 

Kline12

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Yikes. That's tough too. I wish I had access to all of my dads info to be able to sit down with him and go through everything. But I know that if I asked, he wouldn't allow it.

Not yet, but probably soon.

I recently found out my father (72) has gone through his entire 401k making some very bad financial decisions over the past couple of years. I've had to get his monthly bank statements and help him start cutting costs.

For example, he was paying $374/month for Direct TV, Internet and his AT&T cell phone. He had a 50 MB download for doing nothing other than email. Reduced his internet down to 6 MB, trimmed his DirectTV package way down and moved his cell phone under my plan as an additional line. So that went from $374 a month down to $125 or so.

Even so, he still wastes money on things. He bought a lot of unnecessary Ethan Allen furniture for his 1 bedroom apartment. A dining table, chairs, china cabinet, a bunch of entertainment center pieces. He sent in a ceramic bald eagle to get it bronzed. Just lots of really bad money decisions.
 

Mpoitrast87

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I'm the same age as you. I'm not in your situation. But if it came down down to it I would help my parents as much as I could as I know they gave me a good life.
 

black4vcobra

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Tough situation OP. I've never had to help my parents out financially but when I was 12 (1996) my dad and uncle started a business. We went from an annual household income of ~ $75k to ~$40k overnight. Luckily the business broke even the first year, turned a profit the next and within 3 years we were back to the starting point on household income. Now they are in their early 60s and quite comfortable with mom retired and dad semi-retired. Had I been older at the time, I would have done anything I can to help get the business off the ground. Maybe that is an option for you?

To gather more of an understanding on the situation, how old are your parents? Does your mom work? What are they selling? Like cars, TV's, computers, artwork, furniture, etc? Is their house paid for? Is the local market a good fit for a new gym or are there SNAP fitness (or similar) locations nearby?

I'm sure everyone here would be hesitant to sell something for a loss but sometimes that is your only option as a failing investment can sink the entire ship.
 

sleek98

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Not mine, but my wifes.

Came to us a couple years ago about 3 days before christmas, utilities were going to be shut off the following week. Had overdrawn his bank account by a few hundred. House was 2 months into getting foreclosed on, luckily it was BOA so he had another 3 months. Claimed his long term girlfriend was abusive.

We paid to get all his utilities current, made sure he had cash for food until his next paycheck.

I took over all of his finances, made sure all his bills were paid. We let him move in with us for 6 months. Went from 50k in debt to having 40k in the bank 18 months later. Then he got back with his old girlfriend, blew all his savings, opened up new credit cards and now none of his children will talk to him.

Good luck getting your dad back on track. It doesnt sound like they have a spending problem, but rather he has just taken on more than he could really cash flow.
 

awsmsvt

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Tough situation but I would help my parents. Hell, I'd sell my cars just so my parents could get by if they needed to. I remember when my dad got laid off he had to start selling his personal belongings just so we could get by. That was probably the turning point in my life where I knew I'd do the same for them if things go downhill
 

STAMPEDE3

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Yes but never with really big things. My dad retired and does fine.
My mom lived off of social security only and I've done things like pay 3K for dental work she needed.

Sounds like he needs to sell the gym but this is based only off of what you are telling us. Without seeing the books it is impossible to say for sure.

Help if you can.
You won't like my financial advice for you.
 

Coiled03

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I haven't had to, and likely never will have to. Quite honestly, I wish I could, but they wouldn't accept anything.

My parents, and my dad specifically, did more for me than I can ever repay. If I were half the man he is, I'd be happy.
 

rotor_powerd

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That's rough. Side rant, we are getting ready to go through a similar thing with my wife's biological dad, except it's a very different situation. He was "paralyzed" his entire life by his parents who did and provided everything for him, and he never managed to realize that the world doesn't actually owe him anything. Basically he is at the point now where the consequences of the way he's lived his life are all coming down at once.

Back to your case, it sounds like the insurance business is profitable? Sounds like it may be time to swallow some pride, seriously trim some fat, and reassess.
 

Laffs

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Yikes. That's tough too. I wish I had access to all of my dads info to be able to sit down with him and go through everything. But I know that if I asked, he wouldn't allow it.

I had to lend(give) one half of my parents (divorced) money at a young age, never got it back, never got an explanation why. I chalked it up as they were providing for me so really it's there money to begin with (it was savings I had stocked up) but as I got older and saw where the money was going I got more cynical. If someones good with their money but has unfortunate circumstances or makes a couple shortsighted mistakes I can see helping them back on to their feet if they are willing to change destructive behavior. But if people are going to continue to spend beyond their means or make demonstratively poor decisions helping them does more harm than good IMO.

Hate to say it like this, but if he wouldn't at least allow me to see the current financial state I wouldn't lend money. Try and do what I can to help market the businesses or improve them with manual labor sure, but actually shell out cash not without knowing where the money is/has been going and why it's in such short supply. I think you and your siblings need to talk to your parents frankly and say you want to help them out but you want to do it collectively as a family with no secrets or hiding things. If it's always seemed like they have been struggling perhaps they need to change their lifestyle as unfortunate as that may be.
 

svtfocus2cobra

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Im busting my ass now trying to get to the point where Im making good money and/or have my own shop because I know that in about 10 years Im going to be taking care of my parents financially. They have worked their asses off their whole lives but they never learned anything about financial preparedness. They've owned their own successful business before, for many years, but they gave it up to start another. That is when their lack of understanding for business showed and they ran out of money before the new venture even got off the ground. That was 14 years ago and they still have not recovered, and now they are too old to start anything new.

Im already loaning them money regularly but I usually dont ask for it back in hopes they will eventually get ahead. Im hoping I will be able to get them a house at some point here and hopefully that will free up a big part of their financial issues since Washington is one of the most expensive places to live.

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yellow03cobra

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I would tell them to speak to a bankruptcy attorney if they were really hurting. Giving someone money doesn't teach them anything. Having been through bankruptcy I had my credit repaired enough in a year that I could get decent car loans and live normally again. Taught me how I should have been living in the first place.
 

Kline12

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I went ahead just a little bit ago and told him that he and I needed to sit down and truly try and figure out where he is financially. His exact words were, "it's very convoluted between personal, office and gym." To which my response was "but they all have the same thing in common, $$$." He has agreed to sit down and try and go over everything. I told him that I want to help in any way that I can.

The insurance business turns over profit, but as some of you stated, not enough to support itself and another business. My dad is a very prideful person, and even though he has a right to be, he needs to swallow it for the sake of their own survival. He grew up in an abusive home, so he is proud of his accomplishments as he had never received any sort of praise for anything growing up. But that is hindering his ability to see and comprehend the big picture, I feel like.

He also agreed to allow me to help with promoting the gym, and getting it some more publicity. The location is excellent, and the customer base is there. There is almost no competition within a 30 min. drive. Selling it will be something I bring up once he presents to me his debt:income ratio, if it is just something he's not going to be able to handle anymore financially.
 

DAVESVT2000

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Tough situation OP, but I have to ask, why did your dad open a gym, when his background is insurance ?

One thing my father and grandfather taught me was "stick with what you know".

My family owns commercial real estate, mostly ground leases, but a few older multi tenant buildings. Every now and then a tenant will come to me asking for business advice relating to their business, and I have to tell them I know about buildings and land, that is my business. I don't know anything about I.E.: coffe shop, restaurants, music store, etc., that's your business.
 

Kline12

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It's something he is passionate about. He is a really really big guy. I mean, the dude is massive. Body builder type. He has always been an avid weight lifter. He has a bachelors in sports medicine. So I think the question really is, why did he start the insurance business? lol. I don't think insurance was ever his dream, but did what he could with the cards he was dealt.

Tough situation OP, but I have to ask, why did your dad open a gym, when his background is insurance ?

One thing my father and grandfather taught me was "stick with what you know".

My family owns commercial real estate, mostly ground leases, but a few older multi tenant buildings. Every now and then a tenant will come to me asking for business advice relating to their business, and I have to tell them I know about buildings and land, that is my business. I don't know anything about I.E.: coffe shop, restaurants, music store, etc., that's your business.
 

nxhappy

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we have some "mental" family members that we help out, but they barely live above the poor people standard. It sucks man. I hope your family figures it out. Just remember, you're on your own now, and you have to take care of yourself first, THEN your other family members. Can't help others if you are struggling yourself.
 

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