Ways to Lend Friends and Family Money
If you are a giver like me, then you probably have a tendency to put yourself in situations that end in financial turmoil to bail out another person.
Don’t do it.
Act like you love yourself, move like you love yourself, speak like you love yourself, and putting yourself in a financial shit hole for someone else is not loving yourself. Now, if you absolutely must loan someone money, write up a financial payment plan and have that shit notarized.
You may be thinking, wow DMD, you’re doing the most. Oh, okay. You have obviously never been in a position where you’re constantly asking for your money back and receiving the same news: they don’t have it. (Side note—don’t ever let someone have to ask you where the money they loaned you. If you don’t have it, open your mouth and communicate that to them beforehand.) The best way to loan money is to write out a plan of action with notarization. If you don’t want to get anything notarized, at least have a payment plan written out so you tentatively know when you’re going to get your money back. I know how hard it is to see other people struggle, especially if you feel like you are in a position to help them. However, do not lend money you are not willing to lose. Do not lend money that you don’t have. Just don’t lend money period.
Have you ever loaned out money and never received it back? Share your money lending stories on the:“Ask Dina” Tab.