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5 Golden Rules For Lending Money To Friends And Family

5 Golden Rules For Lending Money To Friends And Family

You may not be able to buy friendship with money, but you can certainly destroy friendships with it.

Lending money to friends and family is a very delicate affair, and like Dave Ramsey, I would flat out recommend never lending friends money, since money is always a difficult subject to talk about, personal loans can often lead to communication breakdowns which can wreck any relationship.

That said, if you really want to loan your friends some money, here are 5 key tips to follow to ensure that this loan does not destroy your relationships. If you are really lucky, you might even get back the money you loaned.

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1. Understand that you probably won’t get the money back.

If your friends or family are asking you for a loan, then they are not asking a bank for a loan. That is not a good sign. If you do want to loan out money to them, you need to stop and think about how important getting the money back is compared to not ruining your relations. If the latter is more important to you, it may be better to just make the loan a gift.

However, if you decide to make it a loan, you need to consider how important it is to get that money back. You need to be consistent about this, so that both you and the person you are loaning it are on the same page when it comes to paying the loan back.

2. Make a contract.

Your friend may want to make the loan a handshake agreement, promising that they will pay the money back at a certain point. Don’t let them.

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As you are making the loan, you get to set the terms. If you want your money back, a handshake agreement means nothing – a contract does. You can get a free promissory note here from Suze Orman which will let you set the terms of the loan. Also, get the loan signed by both of you and notarized. The latter part is critical.

If the worst comes to worst and you decide to take your former friend to court, a notary can stop them from claiming that they never signed anything. Your friend should have no problem being specific about repayment terms if they really intend to pay you back, so hold them to their word and get the contract written.

3. Don’t expect any favors back.

When someone owes you money, you may feel like they owe you something beyond the cash you gave them. You might think they should help you out with that weekend project you’ve got, or buy you a drink next Saturday.Thinking like that is a bad idea.

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If you signed a contract with your friend, then your friend agreed to pay the money back and nothing else. Expecting more is improper and makes it look like you are lording your better finances over him. Don’t hesitate to be firm about getting your money back, but don’t use it to get other perks or favors from your friend.

4. Ask if there are other ways you can help.

There are always other ways to help your friends beyond giving them money. You can teach them ways to make or save money. You could also help them around the house or office. If they are having problems with bills, you could even offer to pay the bill directly instead of loaning them the money.

If your friend is asking for help with a personal finance loan because they have a problem. Find out what the problem is and see if there are other ways you can help fix it. If they do not want to tell you, then point out that they have no right asking you for money if they won’t tell you what the money is for.

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5. Learn to say “no”.

As noted at the top, I would recommend against loaning any of your friends or family money; however, you may also have some close people who you consider reliable who have just hit a rough patch, and are confident that they will eventually repay you.

On the other hand, there are those family members who you would never trust with 50 cents. I have a family member who is incredibly compassionate and heart-warming – and that is the exact reason I would never loan her anything, because I know she would blow the money on the first sob story she ran into.

At certain points, you just have to say “no”. Your friend or family member may get mad, cry, or throw a tantrum, but this is your money. Offer other help as noted above, but learning to say “no” is critical to succeeding in general.

If your friend is willing to break it off with you over a sum of money, then they were never really much of a friend at all.

Featured photo credit: Next Avenue via nextavenue.org

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Last Updated on April 14, 2021

How to Deal With Anger (The Ultimate Anger Management Guide)

How to Deal With Anger (The Ultimate Anger Management Guide)

We all lose our temper from time to time, and expressing anger is actually a healthy thing to do in our relationships with others. Expressing our differences in opinion allows us to have healthy conflict and many times come to an agreement or understanding that works for everyone. However, there are times when anger can become overwhelming or damaging, and during these times, it’s important to learn how to deal with anger.

Expressing anger inappropriately can be harmful to relationships, both personal and professional. You may express too much anger, too often, or at times that are only going to make things worse, not better. In this article we will look at anger management techniques that will help you better control your emotions.

Let’s take a deeper look at how to deal with anger.

Expressing Anger

Anger is a natural and normal part of almost any relationship. This includes relationships with your significant other, kids, boss, friends, family, etc. Anger provides us with valuable information if we are willing to listen to it. It clues us in to areas where we disagree with others and things that need to be changed or altered.

Unhealthy Ways to Express Anger

Here are some common yet unhealthy ways to express anger that you should avoid:

Being Passive-Aggressive

This is a term many of us are familiar with. Passive-aggressive behavior happens when someone is angry but uses indirect communication to express their anger.

Some of the more common passive-aggressive behaviors include the silent treatment, making comments about someone behind their back, being grumpy, moody, or pouting, or simply not doing tasks or assignments that they should.

This is a passive-aggressive person’s way of showing their anger. It’s not very productive but extremely common.

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Poorly-Timed

Some people get overwhelmed and express anger in a situation where it can’t really do any good.

An example would be getting angry at one person in front of a crowd of people. All that does is make people uncomfortable and shuts them down. It’s not a healthy way to express anger or disagreement with someone.

Ongoing Anger

Being angry all the time is most often a symptom of something else. It’s healthy and normal to express anger when you disagree with someone. However, if someone is angry most of the time and always seems to be expressing their anger to everyone around them, this won’t serve them well.

Over time, people will start to avoid this person and have as little contact as possible. The reason being is no one likes being around someone who is angry all the time; it’s a no-win situation.

Healthy Ways to Express Anger

What about the healthy ways[1] to adapt? When learning how to deal with anger, here are some healthy ways to get you started.

Being Honest

Express your anger or disagreement honestly. Be truthful about what it is that is making you angry. Sometimes this will entail walking away and thinking about it for a bit before you respond.

Don’t say you’re mad at something someone did or said when it’s really something else that upset you.

Being Direct

Similar to being honest, being direct is a healthy way to express anger.

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Don’t talk around something that is making you angry. Don’t say that one thing is making you angry when it’s really something else, and don’t stack items on top of each other so you can unload on someone about 10 different things 6 months from now.

Be direct and upfront about what is making you angry. Ensure you are expressing your anger to the person who upset you or you are angry at, not to someone else. This is very counterproductive.

Being Timely

When something makes you angry, it’s much better to express it in a timely manner. Don’t keep it bottled up inside of you, as that’s only going to do more harm than good.

Think of the marriages that seem to go up in flames out of nowhere when the reality is someone kept quiet for years until they hit their breaking point.

Expressing anger as it occurs is a much healthier way of using anger to help us guide our relationships in the moment.

How to Deal With Anger

If you feel angry, how should you deal with it right at that moment?

1. Slow Down

From time to time, I receive an email at work that makes me so angry that steam is probably pouring out of my ears.

In my less restrained moments, I have been known to fire off a quick response, and that typically has ended about as well as you might imagine.

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When I actually walk away from my computer and go do something else for a while, I am able to calm down and think more rationally. After that happens, I am able to respond in a more appropriate and productive manner. Doing things that helps you learn how to release anger can make an uncomfortable situation more manageable before it gets out of hand.

2. Focus on the “I”

Remember that you are the one that’s upset. Don’t accuse people of making you upset because, in the end, it’s your response to what someone did that really triggered your anger. You don’t want to place blame by saying something like “Why don’t you ever put away your dishes?” Say something more like “Having dirty dishes laying on the counter upsets me—can you work with me to come to a solution?”

When you are accusatory towards someone, all that does is increase the tension. This doesn’t usually do anything except make your anger rise higher.

3. Work out

When learning how to deal with anger, exercise is a great outlet. If something happens that angers you, see if you have the opportunity to burn off some of the anger.

Being able to hit the gym to get a hard workout in is great. If this isn’t an option, see if you can go for a run or a bike ride. If you are at work when you become angry and the weather permits, at least go outside for a brisk walk.

Besides working some of your anger out through exercise, this also helps to give your mind a chance to work through some ways to address what it is that upset you.

If you’re not sure where to start with an exercise routine, check out Lifehack’s free Simple Cardio Home Workout Plan.

4. Seek Help When Needed

There are times when we could all use some help. Life can be stressful and overwhelming. It’s perfectly fine to seek some help from a mental health professional if it will help you get back to a healthy balance.If you find that you are angry all the time, it might be a good idea to go talk to an expert about learning to control intense emotions. They can give you some sound advice and ideas on how to get your anger to a more manageable and healthy level.

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5. Practice Relaxation

We all seem to lead incredibly busy lives, and that’s a good thing if we are loving the life we are living. That being said, it is very beneficial to our physical and mental well-being to take time out for relaxation.

That can mean spending time doing things that help us calm down and relax, like being around people we enjoy, practicing deep breathing or listening to music. It could be making time for things that help bring us balance like a healthy diet and physical activity.

Many people incorporate techniques such as yoga and meditation to calm their minds and release tension when learning how to deal with anger. Whatever your choice is, ensure you take time out to relax when warning signs of anger start to bubble up.

6. Laugh

Incorporating humor and laughter on a regular basis will help keep anger in check and help you get over a bad mood and feelings of anger more quickly. This isn’t part of formal anger management techniques, but you’ll be surprised by how well it works. Remember, life is a journey that’s meant to be enjoyed fully along the way through healthy emotion. Make sure you take time to laugh and have fun.Surround yourself with people that like to laugh and enjoy life. Don’t work at a job that just causes you stress, which can lead to anger. Work at something you enjoy doing.

7. Be Grateful

It’s easy to focus on the bad in life and the things that cause us negative emotions. It’s vitally important to remind ourselves of all the wonderful things in life that bring us positive emotions, things that we easily forget because we get caught up in the whirlwind of day to day life.

Take time out each day to remind yourself of a few things you are grateful for in order to help you learn how to release anger and invite in more positive feelings.

Final Thoughts

Life can be overwhelming at times. We seem to have constant pressure to achieve more and to always be on the go. People we are around and situations we are in can cause stress, anger, and negative emotions. At times, it can seem to be too much, and we get angry and our emotions start to get out of control.

During these times, keep in mind that life is an incredible journey, full of wonder and things that bring you joy. When you find yourself angry more often than is healthy, take time out to remember the good things in life—the things that we seem to forget yet bring us so much positive energy and emotions.

Use some of the tips included here to help with how to deal with anger and better control your emotions.

More Resources on Anger Management

Featured photo credit: Andre Hunter via unsplash.com

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