The 7 hardest things you’ll ever have to do with your money

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Not every financial decision you’ll make will be easy, and some, like saving and planning for later in life and talking to your partner about money, can be rather tough.
But, everyone will face these things at one point or another.
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When it comes to managing your money, it can be difficult to come to terms with the choices you have to make.

Whether you’ve been asked by family for a loan or are starting to think about tough things like life insurance, there are lots of choices we’ll have to make throughout our lives that can be tough to come to terms with, even if they’re ultimately the right call.

But that said, that doesn’t mean that these decisions, actions, and realizations won’t be tough. Here are seven of the hardest things you’ll ever have to do with your money.

Turning down a family member’s request for a loan

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It can be difficult to turn down a family member who asks to borrow money, but says it’s always best to "just say no."

"You’re potentially setting yourself up for a lot of heartbreak and problems when you loan money to relatives or friends," says personal finance expert and author Lynette Khalfani-Cox. "It sets up a power imbalance in a relationship."

And it could create more than just an awkward holiday — it could land you in financial trouble as well, putting you in a position where you don’t have the money you need for yourself. "The borrower may have the very best of intentions, but we all know that life happens and things can get in the way," Khalfani-Cox says. "You’re at risk of not getting your money back."

Learning how to live within or below your means

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As people start to earn more, it’s common to increase their lifestyle, spending more as their income rises.

There’s a term for this: lifestyle creep. There’s nothing inherently wrong with it, except that it has the potential to creep past a person’s income, enmeshing them in a lifestyle they can’t truly afford.

"None of us have an unlimited amount of resources," Khalfani-Cox says. To make your life fit your budget, she suggests considering your priorities.

"Look at your goals and objectives, look at your values, and then determine, ‘Is this really helping me to meet my goal?’ or, ‘Is this in alignment with my values?’" she says.

Learning how to control your spending

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Understanding that you’re spending too much can be hard, and reining in your spending can be even harder.

One of the ways Khalfani-Cox helps her clients get a clear picture of their spending and eventually cut back is through a budget. When she works with clients in building a budget, she leaves them space to spend however they want. She says this makes people really think about what they’re spending.

"Usually in about three months’ time, the frivolous purchases fall off," she says. "People are like, ‘Oh, I don’t really need to spend $200 a month on this.’"

She continues: "They become more thoughtful and introspective about ‘Why am I buying this?’ or, ‘Didn’t I already have another black dress or the latest cell phone or gadget?"

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