We’ve all been asked to lend someone some money at some point in our lives. Sometimes it’s a large amount and other times it’s only a couple bucks (which isn’t usually a big deal). It can be a problem however when someone does happen to want to borrow a substantial amount of money.

In these situations, does it depend on who it is that’s asking? Does it depend on the amount that’s being asked for? Does it matter in what state your finances are at that point in time? I believe that it depends on all of these things. It also depends on a lot of other things, too many to mention here. The point is that each situation will be different, and also how you choose to handle things.

For most situations, I would avoid lending money to family and friends. There are far too many complications that can give rise to all sorts of ill will. It’s possible that you will never see the money again or you won’t get it back as soon as you as you had agreed upon. Too many friendships have been broken and family relationships tarnished because of loans that have gone bad. All you have to do is watch any of the daytime “judge shows” to see it firsthand.

Now, there will be certain times when you will feel that it’s necessary to lend someone some money, and that’s fine. I’m not saying that you should never lend someone money, but I do think that we should be more judicious with when.

I’ve heard the suggestion not to ever lend money, but when you feel it’s that important to give the money as a gift. Not everyone will be financially able to take this approach, but it’s definitely an idea to keep in mind.

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