Lending money to loved ones is always a tricky situation. We’ve put together three tips to help you out! Continue reading to learn more…
Learn the nice way to say “no.” Most importantly, you should be concerned with your own financial situation. If it doesn’t make ‘financial sense’ for you to lend money at this time…you must say no. Here are some ways to put it nicely: “That’s not in my budget right now, sorry” or “I have a strict no-lending policy. I have lost too many relationships this way.”
Try to help them out in other ways. Can you give a ride? How about moral support? Or maybe even recommend trustworthy financial services? Just because you can’t lend money doesn’t mean you’re not able to offer something else of value – like your time and advice!
If you do lend money, be smart about it. If you have found that it will not adversely affect your finances to lend some money, then make sure you treat it as a transaction and not a favor. Regardless of who the person is that you are lending to, it’s important to get it in writing. You can find a free promissory note form online, and even have it notarized to show the borrower that you’re serious about being repaid.