A friend in need, is a friend ‘in deed’
I will entertain the idea of lending money to someone I trust, if they are truly in need. Because of this, Father Miser sometimes describes me as generous, mainly due to the fact that I don’t charge interest on personal loans, or hound the poor souls until I get my money back.
My version is that I will lend most people a modest amount of money at least once in their lifetime. If they choose not to repay me, they won’t ever get another penny from me again. My philosophy: money you can loan someone should be money you can afford to give away.
Having said this, I admit it is hard when I have taken pity on someone, loaned them some cash only to see them blow it the next week on dinners, drinks and expensive golf games – especially when I rarely treat myself to such extravagances. These types of financial ties are a breeding ground for resentment and often strain friendships.
So, next time you are asked for money, assess the need. Does this person need money because his/her furnace broke down in the dead of winter? Or have they simply run out of fun money?
Ultimately, you decide where your money goes. Just remember, be sure to evaluate your own financial comfort (and your friendship) before you choose to give some away.
I would like to know: Do you loan money to friends easily? What are your considerations beforehand?