Borrowing Family Members--Break The BondDecember 5, 2011
You are a nice guy. You cannot say "no" to family and friends in need. Someday you may need their help. These are the excuses you use to allow family and friends to run through your savings. However, you secretly wish your family and friends took better financial care of themselves.
The best thing you can do for the perpetual borrowers in your life is:
- Know how much you can afford to loan (or give) family and friends before they ask
- offer assistance in locating a primary or second job (e.g., preparing resume, providing bus pass)
Helping family and friends when they are in real need and you are in a position to help is a good thing. Never being able to save for a rainy day because of helping family and friends is not good for anyone. This behavior becomes a vicious cycle of everyone borrowing and no one saving.