Finance may have crept into everyday conversations, but money is still a touchstone, especially when it comes to family. It’s a delicate topic because you don’t want to bother your loved ones, but also remember that you’re not obliged to borrow money if you don’t want to. Take your time and before anyone asks you to borrow money , think about whether you are ready for that step. Because even though we don’t want to admit it, lending money changes the dynamics of the relationship.
If you decide to lend someone money, first find out the reason they really need the money. Is it something necessary or trivial because it will certainly change the way you look at the one you lend money to, whether you want to admit it or not. Namely, it is in the human psyche to help the one who needs help, but also if you see someone wasting your hard-earned money on things that even you would not afford, be assured that there will be problems.
However, if you decide to take this step, the best way to borrow money is to pay directly into your account. Paying money by hand is not the best choice, it does not leave a written mark, which could cause difficulties when paying off debt. By paying into the account, there is at least proof of how much money has been borrowed.
Lending money is a delicate thing and should be treated as a business relationship no matter how close the people we are lending money to are. It is best to contractually define the amount, repayment period and interest rate if required. The risk of any complications is then reduced as both parties know that they are bound by the contract. In the same way, you should treat the deal if you find yourself in a position to ask someone to lend you a certain amount.
It is important to change your mindset and think of this method of lending money as if it were a loan from a bank, savings bank, or credit house. The advantage of financial institutions is that they do not view trust as a security instrument. It is only important for them that the client has a proper income and regularly settles all his debts. This is probably why an increasing number of people are beginning to start borrowing money from financial institutions because they do not want to listen to the gossip of what the money is going to spend or how they got into the situation that they need it at all.
There is a strictly business relationship with financial institutions, while with family and friends, lending money changes the power relationship. And nobody wants that. Once that happens, the relationship changes irreversibly. Lending money should be a business transaction, but when it comes to emotions, it is not easy to break away from them. It is not easy to listen to someone complain about you borrowing money. But if he has already done so, it’s not his decision to spend it. It is only important that you return the money on the agreed terms and on time. Or if you are not able to do so in time, at least inform the other party in the hope of reaching a different agreement.