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Inlaws who are always broke.

My wife and I aren't wealthy but over our 15 years together have saved a fair amount of money from living frugal, budgeting and planning. We have no debts, own our small home and vehicles outright and are raising our 2 children. Currently our only income is $2000/month from a trust fund I inherited. I currently don't work due to health issues.

My wife's parents are both on disability. They have never managed money well. They have seldom had more than a dime in savings and are usually broke right before they get their monthly checks. They spend alot on things they don't need and often don't have funds for what they do need. They have lived with us on many occasions until 4 years ago when we loaned them over $25,000 for them to move out (they are also very messy and I didn't want them living with us any more). They gotten a little better in recent years and pay us back about $250/month.

Our biggest problem right now is my wife's brother. He started having kids at age 20 and working at fastfood jobs. He has 3 kids (all unplanned) ages 2,4, and 5 with his ex. They were always broke and were struggling and finally divorced a year ago and they share custody. Her brother, like her parents, doesn't know how to manage money or budget. We had loaned him over $10,000 in the past 5 years to help him through tough times and he has only paid a little bit back here and there over the years. He does help to support his kids financially but that leaves him freqently broke and homeless. He still works food service and has applied for better jobs but the local job market sucks. He is frequently homeless and often stays with us. He agrees to help with expenses some and then often he don't. He wants to get on his feet again and to better himself and to be a good provider for his kids. I've tried giving him advice on living frugally but he hasn't changed much. He sp ends a fair sum each month on unnecssary driving and buying alot of soda at convenience stores. I don't want to throw him or his kids out on street but we can't really afford to help support another (adult) child right now. I don't want to appear pessimistic but I can't really see his situation improving much until his kids are 18 even if he finds a good job.

What can we do to help him without becoming poor ourselves?

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