What do you do when a friend asks to borrow some money? If it’s a small amount of money then perhaps there is no issue. But what if isn't?
Money issues can be a problem in any relationship. It has wrecked marriages, caused a “gap” between parents and children, and unfortunately, caused friendships to come to an untimely end. Here are some ideas on how to make the question, “can I borrow some money?” a lot easier to answer.
I Would Give My Friends the World If I Had It
Some of us feel that way. I have a friend or two who I would loan or even give however much money they ask for (if I have it), and they would do the same for me. But the reality is, not every friendship is a like, and not everyone has the same financial abilities or responsibilities.
Make Your Feelings Known
If you are the type of person who doesn't think loaning money to anyone is a great idea, or if you suspect someone has befriended you in hopes of someday tapping your resources, then make your feelings on loaning money known ahead of time. Skillfully dropping hints that you don't loan money will likely help you avoid the situation all together.
Is It A Gift Or A Loan?
Many friendships have ended because it was not clear from the beginning that the money was a loan, not a gift, and how and by when the loan is to be repaid. If you feel it’s necessary for peace of mind, ask your friend to sign a *Promissory Note (which is legally binding if done properly), stating the amount of the loan, the date and method by which the money will be paid back, and the amount of interest that will be paid, if any.
How Do Your Friends Handle Their Money?
Ask yourself that question before the subject of money comes up. There’s no need to pry, as you spend time with and talk to your friends, in one way or another the subject of money will come up. Time and observation will allow you to be able to answer the question above, as well as the following auxiliary questions.
How does he spend his money? Is he a tightwad or spendthrift? Does he have a well-stocked portfolio or does he get constant calls from creditors? Is your friend the kind of person who wouldn't ask to borrow money if her life depended on it, or does she borrow money all the time? Does she pay it back on time or do you have to send out a search party?
Answering those questions will help you know in advance what you will say to the question, can I borrow some money?
Sometimes You Want To Say No.
There are circumstances where you simply do not want to loan the amount of money asked for. Perhaps you have the money earmarked for something very important. You may be in the situation where the money is not yours alone to give. Then again, it may be that you have no confidence that it will be returned, and you can't afford to take that kind of loss.
A friend is a friend in good times and bad. Perhaps you can give a smaller loan, or there might be some other way you can help that doesn't involve money. Either way, it’s a tough decision and you must decide whether you will loan the money anyway and deal with the aftermath, or say no and see if your friendship can withstand the monetary bump in the road.
Maintaining long lasting friendships can be a challenge, so decide in advance what you will say when asked to loan money, and it won't seem like a challenge to you at all.
Money issues can be a problem in any relationship. It has wrecked marriages, caused a “gap” between parents and children, and unfortunately, caused friendships to come to an untimely end. Here are some ideas on how to make the question, “can I borrow some money?” a lot easier to answer.
I Would Give My Friends the World If I Had It
Some of us feel that way. I have a friend or two who I would loan or even give however much money they ask for (if I have it), and they would do the same for me. But the reality is, not every friendship is a like, and not everyone has the same financial abilities or responsibilities.
Make Your Feelings Known
If you are the type of person who doesn't think loaning money to anyone is a great idea, or if you suspect someone has befriended you in hopes of someday tapping your resources, then make your feelings on loaning money known ahead of time. Skillfully dropping hints that you don't loan money will likely help you avoid the situation all together.
Is It A Gift Or A Loan?
Many friendships have ended because it was not clear from the beginning that the money was a loan, not a gift, and how and by when the loan is to be repaid. If you feel it’s necessary for peace of mind, ask your friend to sign a *Promissory Note (which is legally binding if done properly), stating the amount of the loan, the date and method by which the money will be paid back, and the amount of interest that will be paid, if any.
How Do Your Friends Handle Their Money?
Ask yourself that question before the subject of money comes up. There’s no need to pry, as you spend time with and talk to your friends, in one way or another the subject of money will come up. Time and observation will allow you to be able to answer the question above, as well as the following auxiliary questions.
How does he spend his money? Is he a tightwad or spendthrift? Does he have a well-stocked portfolio or does he get constant calls from creditors? Is your friend the kind of person who wouldn't ask to borrow money if her life depended on it, or does she borrow money all the time? Does she pay it back on time or do you have to send out a search party?
Answering those questions will help you know in advance what you will say to the question, can I borrow some money?
Sometimes You Want To Say No.
There are circumstances where you simply do not want to loan the amount of money asked for. Perhaps you have the money earmarked for something very important. You may be in the situation where the money is not yours alone to give. Then again, it may be that you have no confidence that it will be returned, and you can't afford to take that kind of loss.
A friend is a friend in good times and bad. Perhaps you can give a smaller loan, or there might be some other way you can help that doesn't involve money. Either way, it’s a tough decision and you must decide whether you will loan the money anyway and deal with the aftermath, or say no and see if your friendship can withstand the monetary bump in the road.
Maintaining long lasting friendships can be a challenge, so decide in advance what you will say when asked to loan money, and it won't seem like a challenge to you at all.
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