Would you lend a friend $5,000?  How about $3,000? Frankly, I don’t think it’s wise to lend family or friends money.  I’ve loaned friends money twice in the pass.  However, I was repaid.  But, it wasn’t thousands of dollars like this request.  To be exact, I helped a friend out of a bad marriage.  Another time I helped a friend get back on her feet after she put her mother in a nursing home. The second friend tried to make it a habit, however, I ended that.

Why am I leery this time? Could it be because it’s a male or the size of the request? To be honest, I have a hard time with a men asking women for money. Especially large sums of money. So maybe it’s both. When he asked me to lend him the money, I really wanted to ask if he saw a Bank of Rhonda sign in my front yard. What irritates me is this person lives in a 4,000 square foot house, drives a luxury vehicle, but he is unable to pay his bills.  Furthermore, did I mention he took a vacation overseas?

Do you know the quote: “I don’t loan money because it causes amnesia.”  – Unknown  Yes, I love it and here’s a few other reasons why you should not loan friends money.  This includes family too:

1.  It’s rare that family or friends will repay the money – Friends and relatives believe that they really don’t have to pay you back because of the friendship or the fact that you’re family.  When you consider reasons why you should not loan friends money, remember this one.

2.  Help people don’t enable them – Offer to help the person with their finances rather than loaning them money. It may not be want they want, but it could be what they need.

3.  Loaning money can jeopardize your relationship – One of the biggest reasons you should not loan friends money is because it ends relationships if the money is not repaid. Assess whether your relationship is more important than the money.

4.  If the priorities are wrong, it won’t be a priority to repay you –  If you need more reasons to not loan friends money, think logically.  If a person is not paying bills timely or not being financially responsibility, you won’t be a priority either.

5. Your finances could be harmed –  One of the biggest reasons to not loan friends money is financial harm. You could use that money for emergencies or to have a saving for future hardships.

Most people can’t afford to loose money.  So, assess your relationship and decide whether money is worth ending your friendship over.  Friendships end because money is not repaid.  As  result, our reasons you should not loan friends money should be considered.