Money with your loved ones
Money is not the most important thing in life but in fact money answereth almost all the most important things in life . Due to this , So many times and time again it has been discussed that money can either make or break a relationship. In fact, a lot of people do not encourage their partners or any sort of exchange of money among friends and family.
However, all said and done, we can’t help but think of our family and friends when they in crisis and they need money. Therefore, should a situation arise, when you have to borrow or lend money from your close ones or loved one –here’s what you should keep in mind.
Do not go overboard
Don’t go overboard and get overwhelmed by the situation. Do not go by asking other people for money as this might end up putting you in deep trouble. Those who are lending should not hesitate to refuse, since you have to make sure your finances are intact before you help others. If you do not have all the money, lend as much as you can. If you are a borrower, make sure you do not pressure the person and accept as much help as possible.
Understand the situation
If you are the one borrowing or a lending, make sure to understand and analyse the situation before you ask or extend your hand to help the lover or the person. Make sure that both are aware of the real reason behind taking financial help to avoid misunderstandings.
Also, try to consider other solutions as asking for money is usually a reaction to a panic situation, which can at times be solved with discussion.
- Are you a bank ? Never charge an interest
Don’t turn to be a typical money lender institution– by charging a friend or family member with interest for the money given to him/her. Although, the person might agree to the condition in desperation, it might create a distance between you. Remember that instead of going to a financial institution, he/she has asked you for the money believing you’ll understand the situation, rather than take advantage of it.Let me also state that , if you own a financial institution and the loved
one is coming to borrow on a professional basis ,then that’s a different thing altogether.
- Communicate repayment terms isn’t a crime
Money is blood and it is also a relative so when dealing with money, make sure to keep your emotional side away. Ensure discuss everything beforehand, which includes the mode of payment.Unless you are given it to the person for free. If going for installments, then fix an amount, etc. Lenders should keep in mind to never ask the person what he/she is doing with the money as this could cause tensions and rifts in the future. Also, ensure to have the required documentation in place if the need arises.
- Fix a timeline
You cannot wait till thy kingdom come for him/her to return the money, only because he/she is known to you. A proper timeline will only help him/her to return the money easily and without any hassle. It will also ensure accountability. If it is a small amount, make sure the timeline is real and not as fictitious as five years or so. Make such considerations only for bigger amounts.