Tips For Women Lending Money To Family Or Friends For Investments
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Having raised three sons I can remember the words loud and clear, a, can I borrow a dollar? As they grew so did the amount. Never once in thirty-seven years did I plan on seeing any of that money I loaned to them again.
They are grown men now and wear the white cowboy hats of the family. If anyone of them requested funds there would be no questions asked because they have proven over and over their integrity, honesty and loyalty to us. And all three make quite a handsome income compared to their dear old parents.
Lending money is inherently an emotional situation for all parties involved and usually more so for the female member. It is a common practice for a female to be the caregiver and to please loved ones and friends.
There are other family members that wear the black cowboy hats and have caused much friction, disappointment and family rifts that have spread deep roots within the relations.
Holidays, graduations, births, baptisms and all other family gatherings can become strained.
A temporary crisis isnt always so temporary and can quickly become an uncomfortable situation if the lender has to ask for the money to be repaid. It's the same rule as gambling: Don't loan what you can't afford to lose. If you don't have cash lying around, a loan might not be feasible.
Everyone wants to be a good friend, but no one enjoys feeling like someone is taking advantage of their generosity. It is better not to lend and have a friend, than to lend and lose both. Therefore, as a couple we have set up rules for conducting successful financial transactions with friends and family. Perhaps they will help you also.
Tips To Consider Before Lending Money
If you are lending money to someone close to you and if you're financially able, consider making it a gift rather than a loan. This way it will not be a burden upon your mind nor your heart. (If it is repaid fine, however, certain people in your life are special enough for this deed without them even knowing.)
To make collecting a debt easier and more comfortable for all use a service called PayPal. This makes it possible to send and receive payments online. With PayPal, you can send email reminders to the borrower. The lender can then get the money back instantly via email.
Never co-sign a loan or credit card application for someone else without clear, WRITTEN parameters and possible assets involved. And always maintain a business-like environment.
Don't lend beyond your means. Only lend money that you do not need back immediately so as not to ruin your credit or your relationship with the borrower. And always have the agreement in writing.
These are the only four items that we could agree upon. Perhaps there are many more or far less for your family or situation. If we are approached for funds and feel uncomfortable with the person or we cannot accommodate within our plan, we decline and all associated go on with their lives.
Article Source: Articlelogy.com
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