![]() As such, you don’t want to put any additional financial strain on yourself.Īs a general rule of thumb, the following should be top of mind “If you cannot afford to lose it, don’t lend it.” 5. In these situations, you probably aren’t in the best financial position to help others. Let’s say that you recently lost an income source or are in the midst of paying back an emergency medical procedure. And, it certainly applies to lending money to others. “After you have done this, then you can move on to saying the same for friends, family, and eventually strangers and all living creatures,” adds Erstling.īeginning with yourself may seem selfish, but it’s a valuable principle in life. May I experience real peace, real happiness, real love.’ May I be free from Anger, hatred, animosity, resentment, and ill will. As Troy Erstling explains in a Medium post, “You say ‘May I be happy. When practicing “metta” meditation in Buddhism, one starts with oneself. But, if they need that money to replace a furnace as winter approaches, that’s a different story. But, for a larger amount, definitely inquire.įor example, if you know that they’re in a financial crisis and can’t pay their bills, and they ask to borrow $1,000 for a vacation, that makes the answer easy. For that reason, you probably don’t have to grill them. In fact, as a lender, you have every right to know where the money is going.Īt the same time, if someone asks to borrow a minimal amount, like 20 or 50 bucks, that’s probably not got to harm you financially. Ask What It’s ForĪnother way to make the decision to lend money to friends or family? Ask them upfront what they need the money for. My parents learned that the hard way with my sister when she battled an Oxycontin addiction. While this may sound harsh, lending them money is enabling them. Moreover, and this is extremely painful, if the borrower is struggling with addiction, you have to decline the request. In this scenario, why would believe that they would repay a $500 loan from you? Even worse, they have a short temper which results in them bouncing from job to job. And, more importantly, those you trust.įor instance, you have a friend with a poor track record of not paying people back. The quick fix? Only loan money to those who are responsible. In fact, almost a third of borrowers and lenders reported negative consequences, such as resentment or hurt feelings, in a Lending Tree survey. Eventually, this could damage the relationship. For example, repayment may not be a priority for them. There are plenty of valid reasons for not lending money to your family and friends. However, you should tell them that you need time to mull it over and crunch the numbers. What, between feeling like you’ve been put on the spot or having a genuine concern to help them. How does this apply to lending money? Well, you may feel obligated to say “yes” when someone asks for a loan. In order to make better decisions, researchers have found that unconscious thought-equivalent to sleeping on it-can be helpful. Moreover, research has found that sometimes we make worse decisions the more consciously we consider them. Such wisdom also suggests that conscious deliberation helps decision-making in general.” “Sleep also helps organize our memories, process the information of the day, and solve problems. “Conventional wisdom suggests that by ‘sleeping on it,’ we clear our minds and relieve ourselves of the immediacy (and accompanying stress) of making a decision,” writes John M. Sleep on Itīefore making a major decision, many of us are advised to “sleep on it.” But why? Well, here are 8 smart ways you can lend them the money they need while keeping the relationship intact. Secondly, it’s a much more affordable option-interest rates can range anyway from 35.99 percent to an astronomical 199 percent for a personal loan.īut, what happens when the shoe is on the other foot? In other words, a family member or friend asks to borrow money from you. It can be as easy as just depositing a check into your account. At the same time, when in financial trouble, there may be no better place to turn their your nearest and dearest.įor starters, if you’re in a serious pinch, it’s the fastest and easiest way to secure a loan. Even the healthiest and strongest of relationships can buckle under the financial problems this can cause. Financial experts will tell you to steer clear of borrowing money from your family and friends.
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