Should You Lend Money to Friends and Family?

by roshi on April 20, 2010

in Get Rich

The money which is in your hands is yours. In the other hand, the money, which you give away, is not yours after you have given it away. If you want to get rich then watch out where you spend. One way of getting rich is to hold on to what you have earned and never let it go. But it is not possible. There are expenses not necessary, yet you can not ignore. At some point your family or friends will need money and they will ask you. In my opinion you should never borrow and you should never lend money either. This is safe side. But there are circumstances when you have to consider exceptions.

In case of family, I would recommend you to read who is your family. Family deserves more than anybody else. You should always help family while you can, by any means. Because your family is you. Your family is there for you. You fulfill their needs and they fulfill your daily needs in return and they always help you.

In case of friends, it is entirely different. As I have already said that the money which you have given away, consider it gone. In my personal experience the money you will lend to your friends won’t come back. In most cases you will loose your friend in asking again and again for that money. Even he is your best pal, avoid lending him money. By lending money you will make him dependent on you. He will ask again if he is in need and you will be permanently his savior. Avoid this situation.

First look into the situation. If his need is critical, then you should definitely help. But you should consider that money gone. Do not expect it back. You see money is such a thing which is needed by everyone, everytime. This is source which is used to pay bills, eliminate financial problems, buy comfort, secure yourself and for lot more reasons. For every other person, these needs are same for him as well.

Another important thing… If you are earning yourself, then it is okay to lend money, if you want to give it to anybody else. Its your money and you have right to spend it where ever you want it to spend. But if you are not earning money yet but you have got it by any other source, you should really not consider lending money (even if you have plenty of it).

Ask these question to yourself before lending money:

  • Is your budget all set?
  • Are you financially secure for a short time period ahead?
  • Will you need money in coming days?
  • Do you have pending expenses ahead?
  • Do you have to pay bills yet?
  • Is this money yours, which you are lending to somebody else?
  • Does anybody else in your own family need this money as well?

Tip: Never lend money blindly. Always do paper work and bring atleast two more friends as witness with you when you give money to somebody else.

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