Good intentions will lead to disappointment, friendship will turn into enmity, and brotherhood will be destroyed. Never lend money to relatives or friends.

This statement sounds cruel, but it is true. Many people get a bad response when they ask for their money back. This happens especially among family and friends.

In Eastern culture, relatives and friends are the first people to be met when someone faces financial difficulties. This still happens even though banks exist and they are willing to provide financing as soon as possible.

The person who lends money faces a dilemma; lending money brings uncertainty about the return of funds, but if he refuses, the friendship or kinship relationship could be damaged or awkward.

Here are some considerations before deciding to lend or not lend money to your close friend or relative:

• Make sure your relationship with him is good and he is trustworthy.
• The amount of money he borrows is within your ability, and he can return it.
• Pay attention to the reason he lends money. If it is for something unimportant, you should refuse it firmly.
• Give yourself time to think about it. Never answer without thinking it through.

If you decide not to lend it, it’s a good idea to donate some money to help them out of their predicament. Say sorry for not being able to help and sincerely hope that the donation eases their current predicament.

This has worked in many cases that I’ve experienced.

My Mother Talked About Financial Independence