Handing over your hard earned money to someone else is not easy to do (even if you are the least selfish person around). It takes a lot of time and effort to earn your money, so when times are tough it is hard to give it up as well. I’m definitely not saying that you shouldn’t borrow money to people, but there are many things that you should consider before you hand the money over.
How Long Have You Known the Person? – This is a huge consideration. It takes a lot to build a relationship and trust someone enough to pay you back. If you have just met someone and they are asking you to borrow $200 for example, how do you know if you will ever see that money again?
Have They Asked For Money Before? – If someone is consistently asking you for money then something is probably wrong. I understand that times are rough, but if someone is taking the money they borrow from you and going out to buy some new clothes then they didn’t really need the money in the first place probably (unless they had no clothes to begin with).
Are They Family? – The hardest people to say no to when it comes to money is your family. You definitely don’t want to step on anyone’s toes or make anyone upset that will ruin your family relationship. There is a great article from our partners at MainStreet.com about How to Say No When Family Asks For Money. It gives some great tips and makes you realize that saying no does not always have to be your answer.
Do They Already Owe You Money? – If someone hasn’t paid you back yet for money you have already borrowed them then it probably is not the best idea to lend them some more. Saying no is hard, but losing money that you might need in the long run is even worse.
Can You Actually Afford to Lend Them Money? – Times are tough for everyone. Although the person asking you for money might need some right now, you may realize that you will desperately need some in the future. When you work hard for your money you really need to consider yourself (and your family) first and foremost. You don’t want to lend money to someone one week and realize the next that you really need it back, because if something goes wrong and the person can’t pay you back right away, you might be the one asking for money.
Really think through some of your options before you lend someone money. It is a difficult situation to work through but one that needs consideration before you answer “yes” or “no”. Another consideration could be to ask the person if there is any other way you can help them besides lending them money, maybe there is something else that could be more beneficial to them. Whatever your answer may be, make sure you are looking out for your own financial situation as well.
Photo: Ronnie Bergeron
