Lending Money to Friends and Family – When to Say No
I believe in helping friends and family. What’s the point of having money if we can’t support our near and dear ones? I must admit, there have been situations where I have regretted lending money. Once, someone delayed the payment to unbelieving long time and started avoiding us. The other time, we saw this person splurging money on luxuries without even bothering to return our money. One should never lend their hard earned money to undeserving people, no matter how close the relation is. There comes a point when saying NO is the best call. After a few unsavory experiences, I have learned to say no on these occasions -
When Someone Wants Money for a Luxury Purchase
This one is a definite no-no. Lending money to support education, medical emergency or to make the deficit for a big investment, like a house, is understandable. But lending money to buy a car is not. This is among the few situations where I refuse to lend money. There are certain purchases that can certainly wait. Making for the shortfall for a car’s down payment doesn’t call for a loan from a friend. Unless the livelihood depends on it.