Money is not the tree – this is what we all learn when we grow up. It does not matter at what cost, through what lessons and how much it costs our family, our parents. Even if the family is well-off, the little ones will eventually learn how to deal with the material. Fortunately, the tools are there.
Are you okay with borrowing?
In the first sentence, we have already answered the question: it is not the best solution if we lend to people in our environment, especially if it happens from time to time. At the very least, it is not worth giving a loan from a ‘pocket’ who has never been able to give the amount received. Why?
It helps in the short run, hinders development in the long run
Many people are affected by the problem. Stakeholders often do not even talk about it because they help their dear, close acquaintances, whom they cannot say no. Most often people give money even if they do not see it guaranteed that they will get back the loan if they are close relatives: brother, child. Quite a few people unselfishly support their financially ‘needy’ adult children, from time to time, in the belief that they are doing good.
But if you can’t handle money every time you get in trouble, you can help out immediately, thinking that you can do it anyway, it won’t help you. That way, you won’t pay attention to your money, and you may be wondering if you can’t afford to give it a loan. Of course, you can put these principles aside if someone is really in a difficult situation once. Needless to say, if, for example, a baby is born in the family and your affected family member is not financially prepared, the austerity can be forgotten a bit.
How do you do it if you give credit?
There are times when it is not a more rational decision to help. If you make regular searches and you decide to open your wallet, here are some things to do:
- Give me a loan by setting a deadline, in any case. Customize the deadline for your own life, not the one that is most comfortable for your ‘client’ – for example, if you get a job and have worked for a year and a half and bought the engine you want so much …
- Don’t give up repeatedly unless you get your money back – and predict that.
- Didn’t the person arrive on time with the amount? Don’t let your money get away! Don’t let that – even your dearest relative – forget it! Find it and ask for it. She probably won’t try to pump you next time – it’s worth it.
- Communicate clearly and be clear. Because your money will be used by that person, you will set the rules.
- For a friend with a hard time managing money, it can be a great help if you sit down with him and try to figure out with what schedule, when and from what source.
You are the most important
Many people do not manage money in a responsible, adult way – although financial awareness must be learned. If you are not like this – for example because you are reading our financial tips – great news, but you are not obliged to help others. Those who are empty pockets are irresponsibly asking huge amounts of money from others because they want to go on a wonderful exotic vacation and don’t care about the repayment, you don’t have to solve the problem.
The most serious argument against borrowing from friends and relatives is that it creates a lot of tension and stress for you. After all, a friend in the mess either returns the amount or not. If you are an old friend and you owe it, it will ruin your relationship, avoid your company, and not by the way: You will have no money.
For this reason, a significant number of financial experts insist that anyone applying for a loan should direct it to a bank or lending company. Formal, downgraded credit, while providing free-of-charge loans, is used to discipline. In addition, current loans have long been available at very favorable APRs and are therefore not at all impracticable to repay.