Lending Money To Family: 10 Pieces of Advice for Setting Boundaries

Lending Money To Family: 10 Pieces of Advice for Setting Boundaries

June 27, 2023 by Saad Muzaffar

Hey there, moneybags! It’s time to get your financial act together and be mindful of your own situation. If your family hits you up for a loan, how do you set effective boundaries with them? After someone asked for advice, I grabbed the ten best tips from the discussion to help with the situation.

1. Know Thyself Financially

Consider letting the person know clearly if you cannot lend money. However, remember that you are not obligated to lend money, and it is okay to prioritize your own financial well-being.

You can always be transparent by admitting destitution. Someone rightly mentioned that people are less likely to ask a favor of you if you yourself are in a pickle.

 2. Take Care of Your Heart

Many people discussed how lending money caused extreme distress or even depression. One user recalled being severely depressed when their relatives did not return the favor. Remember to view your time and energy as finite resources.

3. When in Doubt, Fib it Out!

Remember that a little white lie can go a long way if you’re in a real pinch. As someone suggested, tell them you’d help if you could, but unfortunately, you’re currently living like a pauper.

So, technically, you are just being honest about not having a surplus after you’ve allocated your finances to your primary areas of expenditure.

4. Set a One-Time Gift Amount

Consider setting a one-time gift amount with the understanding that they can never ask for money again. Now, remember that you have to be strict with this boundary.

As one person mentioned, if you have lent them money despite their continued violation of your boundary, separate your feelings from the matter and put it to a stop.

5. Don’t Mingle Love and Loans

To continue reading, please go to the original article here:

https://investedwallet.com/lending-money-to-family-members-advice-boundaries-set/