Is Loaning Money to a Friend a Good Idea?

Should you Loan Money to a Friend?

What goes through your mind, when your friend asks you to loan money?

Loan money to a friend? Hell no, I don’t want to loan money to anyone. (or) Sure how much do you need?

Just because you are financially able to loan money to your friend, doesn’t mean you should, or does it?

What about the Golden Rule?

One way to think about others better is to imagine yourself in their shoes. When you pause to think how you might like to be treated if you were asking a friend to loan you money. It’s a devastating situation to be in and it’s easy to build empathy for those actually in need.  “Do unto others as you would have them do unto you,” commonly known as “The Golden Rule,” a biblical principal. What happens when this quid pro quo method turns upside down? Did you make the right decision?

If your decision is to loan money to a friend, and you are doing it for good reason, that may be the only assurance you have. Similar to tithing to the church.  You give money to the church for heart felt reason, yet what the church does with it, is not up to you.

My advice, ask your friend questions – ALOT!

Why do you need the money, what will you do with it? When your friend tells you he/she will pay you back, plus additional money for loaning the money as a way of saying thank-you, ask more questions. Where will this additional money come from? And why do you want to give me more money? You need to ask questions because you might be part of a money laundering scheme, even if you are not trying to commit money laundering.

Did I lend money for the right reason, yes I did. It was the Golden Rule method. Did I ask questions? Not enough. Was it money laundering, yes it was.

There is nothing wrong with being wise to those thieves in our lives, they do exist.  With wisdom comes the ability to hold a perfect tension between the intellect and the emotion. When my emotion overrode my intellect, I made a decision that was judged by the law.  Although, my experience was life altering, it has also equipped me to seek better understanding by asking more questions, to say no when it doesn’t feel right and to have courage to take a stand.

Loaning money to a friend, that’s your decision.

Want to know how I learned this the hard way?  Read my story here

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