Three Tips to Lending Money to Friends
Is it a good idea to loan money to friends and family? There are apparently rules for this scenario. Do you follow any of these rules?
Loaning money to friends or even family should be simple task however, it can be a tricky and even strain relationships. Recently, I had a close friend hit me up from four states away, asking to borrow $400. My immediate reaction was "I'm not sure what I can do right now. Let me look into it."
This bought me some time to see the best ways to say "no" or come up with a good excuse.
According to Money Talks News, there are a few tips.
1. Always say "no". It doesn't matter who it is or what the circumstance is. If you always say no you are able to use the excuse "Sorry, I don't loan money". This should not upset the friend as you are not making it personal.
2. If you can't loan them money, try to help them in an another way. If they need money to get their car fixed, maybe offer to give them a ride in the meantime.
3. If you do end up loaning money to a friend or family member just consider it a gift. Expect to never see it again. If they do pay you back then great. However, a good rule of them is to never expect to see it again.