Money is important because it gives us the freedom to do what we want, when we want, and where we want. However, lending money to family and friends can evoke mixed feelings and experiences. In my opinion, I fully agree with the statement that one should not lend money to family and friends.
first borrower may ask for more and if a borrower knows you have money and you’re willing to share, there’s a chance they may attempt to use you as a personal bank account. You become a safety net to fall back on when they run into issues with their finances. People might take you for granted.
next, you might need the money. If you’ve loaned your entire emergency fund to someone else, you won’t have money to fall back on when times get tough in your own household. Without a repayment plan or due date for the loan to be paid in full, it’s hard to say if or when you’ll get it back.
It could ruin your relationship forever. After a few late payments you are essentially become a debt collector for your loves one and this fact could affect relationship, you will be upset that they didn’t pay back which shows that the promises to you just isn’t a priority for them and they’ll feel uncomfortable and embarrassed every time when they see you because they know that is still owing money.
However, it’s believed that friends and family are more important for happiness than material wealth