Ahhh yes……your friend asks you to borrow some money to pay her car note. You feel bad for her so you give her the money. Two days later she is on the beach while you haven’t had a vacation in 5 years. Sounds familiar………Let’s talk borrowing money.
Tough times are here. Grocery is expensive, jobs are cutting hours, gas is up never down, we get sick, etc. Anything can cut your funds and if you live paycheck to paycheck like a lot of Americans borrowing money is what we do. Sometimes we go to Uncle Jack or Aunt Betty and ask them for gas money. I won’t lie and say I have never borrowed money because I have. Times were tough for my husband and I a few yrs ago and we had no choice. We made sure we explained to those who we borrowed from that we would not be able to pay them back up front so if they didn’t have it no worries. Most of our family and friends still gave because they knew we wouldn’t ask if we didn’t need it. Here are some rules and info on lending and borrowing money.
2. Don’t lend money expecting a return on it. If I give you money I know I may not get it back so I make sure I don’t need it or that I won’t miss it so it won’t matter if you give it back or not.
3. Some people are scam artists. If someone says I need money for food I meet them at the store and buy the food. That way I know if they don’t meet me or agree to it they don’t need the money for food. If they need the money to pay the light bill give me the bill I will go and pay it. I rarely give cash give me specifics of what you need and I will go and do it. That way I know my money, that I don’t really have is going to something you really need.
4. Also set up stipulations if they ask more than once. If they ask you the second time for money say I will only give you half and then pay for you to take a course or buy a book for you on money management. After you take the course I will give you a small gift for completing the course. I did this with a friend who needed her car note paid. Her car note was 200 bucks. I gave her 100 in cash took the other 100 and paid for an online course on money management. She had to take the course and I gave a test on it and she passed the test. I bought her a gas card for $50.00. Show that you need the help and you are willing to take it so that you can be in a better financial position.
1. If you are going to borrow money be upfront and honest with your money. Make a promise to pay but if you know you can’t say that. Honesty will get you far and you may be in for more of a blessing.
2. Don’t ask for money to pay your light bill then turn around and post pictures of you on the beach. I truly hate this. Here I am a person who can’t take a vacation because I know I can’t afford it. I give you money because you give me a sob story about your kids and you being hot in your house and then when I look you are at the beach. (this happened to me twice I was the fool but it won’t happen a third time. I learned my lesson and now when people borrow money I refer to #3 above in lending money)
Borrow what you need if you don’t need it do without. Call the companies like your rent or mortgage and see if they can work with you before you go to someone with money. Only borrow if you absolutely need it.
Have you ever had to lend or borrow money from a family friend? Did you pay them back or lend money out to someone? What’s some advice you can give about lending money?