Avoid Ruining the Relationship by Lending Only What You Never Need.
Lending money to help people you care about is noble, but it can get in trouble if not handled correctly. By setting a few clear ground rules and lending only the money you don’t need at all, you can make your life easier.
Before you take your checkbook, always make it clear that you expect them to refund your money. Help is great, but you don’t want to be mistaken for a handout. The Credit Sesame Daily blog suggests that you only lend what you are willing to flush down the toilet so that it never turns against you:
Don’t come back to it again. The best way to alienate friends and family is by encouraging them to get their money back. Better to just not bring the issue up again. Remember that before you make a loan, you decided not to lend more than you can afford. Consider it a gift and don’t ask where your payment is. And the next time you need a loan, you’ve already laid down the ground rules so that you don’t give out more money until the original debt is paid off.
These ground rules allow you to help friends and family in need, but also prevent them from becoming a divider in your relationship. If you only lend what you don’t need and limit them to one loan at a time, you can keep the terms reasonable for both parties. No one is asked to pay, and no one is waiting for the money they need for something else. If you can’t afford to help, it’s best not to offer at all.
Lending money to friends and family without losing one or the other | Credit to Sesame Daily