Never Borrow
Money from Friends or Family (but you Can Allow Them to Invest)
Never Borrow Money |
I think we might need to have a quick recap of what
friends and family are there for—and what you are there for, for them as well.
Friends are for
·
Caring
·
Loving
·
Supporting
·
Nurturing
·
Helping
·
Advising—and getting advice from
·
Comforting
·
Having fun with
·
Sharing
Nowhere in that lot does it mention
·
Borrowing from
·
Stealing from
·
Conning
Put simply, it is very bad manners to borrow from
friends and family. It sets up too many issues and agendas. Its cases
resentments and recriminations and suspicions. It jeopardizes relationships
that are important. Don’t do it.
Besides which, friends and family aren’t proper
sources of loans because they aren’t licensed for it. I’m not talking here of
the odd $20 to get a round of drinks in but significantly large amounts—how
much that is will depend on your circumstance’s. You do need to be licensed to
be a credit broker (no seriously) and if you borrow from friends (or conversely
lend to the same) you have no legal recourse if it all goes wrong—and it will,
as sure as the sun rises.
I know technically you could get proper agreements
drawn up and all that but even then, and even if they are charging you the
proper interest rates, it’s dangerous. If you fail to pay them back—due to
circumstances beyond your control of course—you risk losing their friendship,
which of course would mean much more to you than the loan would in the first
place.
The only exception to this is it family and friends
want to invest in say a business you are starting, and they fully infer stand
that, like any investment, they may not see a return and all the usual risks
apply. What you can’t afford is for it to cause a rift if things don’t work
out. Family and friends are too important for that.
This Article is
Take from The Rule of Money.
Life &
Business Related Problem’s Find Here
Written by Arshad. A