Saying No to a Friend

What do you do when a friend approaches you to borrow money? This is one question that is easy for most people to answer. It’s usually always a yes for people who have money to spare and who know that the friend has a good reason for borrowing money. However, it does get a bit more complicated when you are a bit tight or your friend’s reasons are a little questionable.

What I have found out is that sometimes the better option is to say NO. I am not being a scrooge and espousing an uncharitable behavior. Rather what I am saying is that you should learn to prioritize when you need to. Here are instances when I find it more prudent to say No.

1. When you have a really tight budget. You might help out your friend but end up needing to make a loan yourself. Don’t loan other people money if it would lead to money problems (unless your friend has a real emergency).

2. When your friend will just use the money for petty things. This is true whether you have extra cash or not. Lending money for petty things will only encourage your friend to be financially irresponsible.

3. When your friend has a history of not returning the money on time. Again this is true whether you have extra cash or not. Unless the need is really great you will again be encouraging your friend’s irresponsible behavior.