- Personal Finance
Friends And Loans Don't Mix
Friends And Loans Don't Mix
"Have you ever heard of that old saying?" Don't mix friends with business, the same applies for not mixing friends with money. The last thing you need after reading this article is to have one of your friends call you up for a loan. You know that friend that hasn't called you in seven years; he heard it through the grapevine that you've finally got that promotion and will be making enough for him to hold his hand out to you for a loan. He's forgotten that he already owe you two thousand dollars you loaned him to buy a used car and after he got the loan and the car, you hadn't heard from him.
There were times when you needed money when you were in a bind and your friends turned you down. How about it, the shoes on the other foot, a few of them are holding their hands out to you. Perhaps if you can muster up enough spit to mix with the sweat on the palms of their hands, that should be enough. Everyone wants to be your best buddy when you come into a large windfall of dough. If you feel the need to share the wealth, search for a worthy cause like giving money to St. Jude, The American Heart Association or Red Cross. Your money will do you more good there than with ungrateful friends and relatives that are known leeches. Those vultures sit around and wait for your pockets to be filled so it could be beneficial to them and they wouldn't even give you the lint from theirs.
You are not an automatic teller machine or a bank where they can get loans, you are simply a friend not to be used or abused in anyway. If your friends give you the cold shoulder because you didn't loan them any money, so be it, there are plenty of people in this world and you won't be lonely. It is okay to say no to those asking for loans, just remember saying yes means less in your nest. And the chances of them paying you back may be slim. There are many people that can tell us of the times they have given out loans to friends and haven't heard from them in years.
You have a life of your own to take care of, and you possibly have bills, mortgage and a car note to pay every month. You also have to eat and pay for medical and life insurance. You were not put on earth to take care of your friend's money woes. Anyone wanting to loan money out to a friend who has helped you out in the past and is always there for you, should get assistance from you if you can afford to help them out, but grin and bear it when you hear those stories come flying your way from uncle Sal about "How aunt Vera needs gall bladder surgery, and thousands of dollars is needed to pay for it. It's funny how your aunt Vera's Gall Bladder decides to abrupt and coincides with your windfall of dough. Just tell your greedy Uncle Sal to get another job.
Some people have the audacity to become angry and not speak to you after they've borrowed money from you. I assume that is their way of thinking that you'll think that they are too angry with you to contact you to pay you back the money they borrowed from you, very clever on their part. However, it won't work for someone who works hard for their money and don't want to be screwed out of it, so that hard earner will definitely call and inquire about his or her money and if their friend gets angry, two can play that game.
Demanding that you get your money back will not work, sitting outside a friends house in your car at 2am in the morning with a baseball bat, stalking friends who borrowed from you will not get your money back to you; and not speaking to them is equally non-effective. Needless to say, if you feel the need to loan out money to a friend, there should be some steps you can take to protect your money and here is a tip. A good idea for anyone thinking about loaning money to a friend is to have that friend sign something stating that they will pay you back in so many days, months, years or whatever time frame you need, even charge interest if you prefer; just make sure they are in agreement, sign and have it legally notarized before writing out a check. Very few are sincere when they tell you they will pay you back, so be careful not to fall victim to some of their tricks and be wary and vigilant instead.
Always know that the word "No" is indeed effective, though it might cost you a friend. Ask yourself, "Is that friend worth it, if I can't say no to something that will harm me in the long run?" Who needs them, right. Lastly, set a goal for yourself, that you will find friends in the future who reciprocate and who are highly appreciative.