Almost everyone one of us is faced with a situation where we might have to lend money to someone. You might be a college student, working woman , retired man or a hard working man in your mid 40s. This situation applies to all.
What do you do when someone you know wants to borrow some money? Do you have a set of lending rules that you stick to before making a decision or you always end up lending money to everyone and sometimes never get it back?
Some people do not lend money to friends or relatives for the fear of spoiling a healthy relationship. Some people lend money only for specific purposes like when the borrower is in need of the amount for hospital bills or college fee. Do you have any such rule?
If you don’t its high time you make some. Money is a rewards to your hard work and hence make sure you do not waste it on a lost purpose. I personally need to know the reason for which the person is borrowing money to make sure that my money isn’t being wasted. Also i clearly tell the person that i need it back before a specific time.It is also important to have a fixed amount that can be lent. If the borrowers request exceeds that limit, i make it clear that i cannot lend anything beyond my capacity.
Some of these rules need not apply for your best buddies and immediate family, but do not relax the rules for everyone. There isn’t anything wrong in being sympathetic. But make sure you know where your hard earned pennies go.
