I don’t know whether you have noticed – as I certainly have – that there has been a significant rise in the number of “GoFundMe” pages.

For those who are not entirely sure what I am referring to, a GoFundMe page is a personal fundraising campaign created on the online platform of the same name. Such pages allow individuals or organisations to raise money for various causes.

Users can set up a page to share their story, explain why they need financial support and invite others to contribute. It’s commonly used for medical expenses, education or personal emergencies. People worldwide can securely donate online, making it a popular tool for collective support during times of need.

I am a huge proponent of crowdfunding, especially when raising money for a family that has been a victim of crime or for other worthy causes. It can be a great way to raise awareness beyond just the boundaries of one’s family and friends.

However, I have noticed that crowdfunding has been shifting away from its original goal – raising money for people in need or victims of crime, and so on – to raising money to pay off student loans or, my personal favourite, to pay for a facelift!

Now you might ask why I care: I am not the one asking for money, nor am I donating to these causes. But it irritates me that some people have the nerve to ask others to donate money for things they should simply pay for themselves. If you went to school, then it is your responsibility to pay off your loans. If you want a facelift, pay for it yourself. And if you want to have a big wedding and lavish honeymoon, then save up and pay for it out of your own pocket.

From my perspective, if you are smart enough to create a crowdfunding page, then you are smart enough to manage your money and save for things you want. It all comes down to the basic financial principle of knowing whether or not you can afford to do something.

Asking someone else to contribute financially for something you want – but obviously can’t afford – is a financial red flag and one that challenges the “financial affordability principle”.

Any decision about affordability is a financial one. When you challenge the financial affordability principle, you might think you have outwitted it or skirted around it. But I can tell you that at some point – and I guarantee it will be your lowest – the principle will come back to bite you, and you will wonder why you even decided to challenge it to begin with.

What you saw as a positive outcome in order to finance something has becomes a negative one that may hurt you financially, and more than likely will sour a few relationships.

We have all heard the saying, “Necessity is the mother of invention.” To put a spin on that, I maintain, “Affordability is the mother of determination.”

By now most readers are well aware that I grew up in Australia. Belonging to a family of six, the phrase “we can’t afford it” was constantly thrown around. Even today, I loathe that phrase.

Nonetheless, it had such an impact on my life from a very early age that I knew if I wanted something, I would only be able to get it through my own blood, sweat and tears. I was determined to be able to buy things I wanted, so I marched into KFC the moment I turned 14 and applied for a part-time job. I ended up working there for five years.

Here is what I learnt from these experiences:

• My parents understood the financial affordability principle and were not going to waver, which is probably why they (well, it’s only my Dad now) have a very financially comfortable retirement.

• I came to recognise that if you want something, you need to work for it.

• Looking back, I realise that if they had given me everything I wanted, I would not have got a part-time job. I also would not have understood the value of money or the concept of affordability until I left home years later, when it would likely have impacted me more.

• I came to understand money management early on.

• I also came to realise how desperate I was to fit in; I would often buy clothing, because I was so embarrassed wearing my cousin’s hand-me-downs.

The financial affordability principle helps prevent debt accumulation and promotes financial stability over time. It is about assessing your income, expenses and savings before making financial commitments.

For example, when considering a major purchase like a car or a home, you should evaluate whether the recurring costs, such as loan payments, maintenance and insurance, are manageable within your monthly budget.

Similarly, before taking on new debt, such as credit card debt or personal loans, you should assess whether the repayment will be sustainable without compromising essential needs or future savings goals.

Practising financial affordability also encourages better long-term planning. It prompts you to prioritise saving for emergencies, retirement or other financial goals, rather than overspending on non-essential items. Budgeting tools and financial literacy education can support you in understanding your financial limits and making informed decisions.

At the end of the day, adhering to the affordability principle fosters financial resilience and reduces stress. It empowers you to live within your financial means, avoid unnecessary debt and build a secure future. By making mindful spending choices aligned with your income, you can achieve greater financial independence and peace of mind.

• Carla Seely has 25 years of experience in the international financial services, wealth management and insurance industries. During her career, she has obtained several investment licences through the Canadian Securities Institute. She holds the ACSI certification through the Chartered Institute for Securities and Investments (UK), the QAFP designation through FP Canada, and the AINS designation through The Institutes. She also holds a Master’s degree in business and management