Can I borrow money from you and I’ll give it back to you when I get my next cheque?
Although there are many ways to borrow money the first place where someone who is broke will go is to friends and family.
Finally, you’re debt-free and want to tell someone but then what happens next might make you think twice.
Money can work against you if you broadcast it and that only starts with telling one big mouth.
- Wouldn’t it be nice if nobody ever asked to borrow money from you?
- How many of you cringe when someone you know asks to borrow money?
Struggling To Lend Money To Someone Who Needs To Borrow Money
Is it really a need for the person who wants to borrow money or are there hidden reasons?
Although you may be convinced that you’ll just say no it’s not always that pleasant of a situation.
I’ve had it happen before and it even turned to an argument which left me broken inside.
Seeing someone you love struggle financially is one of the hardest things to witness.
Even when you know they spend money and have no regard for savings it still hurts.
Perhaps it’s your child who has a drug addiction and needs a fix before they go through withdrawal.
I suppose everyone feels differently but for us its bothersome to see family struggle.
What’s even harder is saying that you can’t or won’t let them borrow money.
It’s said that if you allow someone to borrow even a few dollars, don’t expect it back.
When someone promises to pay you back just remember that could take years, if at all.
What we really want to see is that the person is doing something about their situation.
Keeping The Financial Lifeline Open
Granted there are people that would pay back borrowed money from personal sources.
They have so much pride and stand true to their promise and pay the money back as soon as possible.
This way it’s out of the way and a lifeline for the future if borrowing money is needed again.
Trust is the hardest part so if you show the lender you pay your debts fast they may help you in the future.
What the lender really wants is for the borrower to get themselves together financially.
Insurance Claims and Needing To Borrow Money
Trying to get back on your feet after a job loss or work injury resulting in little to no income people are left with government or insurance funding.
If it’s a work-related injury the Workplace Safety And Insurance Board often will drag claimants through the garden.
This is to weed out claimants that can work or are lying to get benefits, and it does happen.
In fact, every insurance company will do the same because that’s just the way they are.
Having to hire a lawyer or paralegal can be costly forcing people to give up on the claim.
Cost To Borrow Money
Whether you lend money to someone you know or you borrow money there are costs you need to be prepared for.
If you are the lender and it’s a friend or family you may or may not want to include interest like any financial institution would. Perhaps not, but that’s your choice.
For the borrower they should be prepared to pay interest when they borrow money.
For example, if you were to take a payday loan from one of those get cash fast stores you’ll pay for that service.
As a borrower, you can’t expect a lender to not want you to pay a fee or interest, even from friends and family.
The idea is that you (the borrower) must get used to interest charges even when you’re broke.
Reasons You Need To Borrow Money
Three questions you will want to consider when you’re broke must be addressed.
- Why are you borrowing money and for what reason?
- Do you understand how to manage your money?
- What can you do to fix your financial situation?
You can’t blame others for your financial situation especially if they deny lending you cash.
Love Can Lead To Financial Loss
I’ve heard it all before how someone got played by someone else and they were left with no money etc.
My wife spends all of our money.
A husband who can’t stop spending money
Couples who can’t budget together leaving them broke is a huge reason that leads to splitsville.
I’m sure many of you who have had a broken relationship can safely agree on one thing, personality change.
The person you marry or are in a common-law relationship with is not the person they divorce or leave.
Two Words – Savings and Emergency Savings
You Keep Your Money And I’ll Keep Mine
In a way, it makes sense for couples who are not married or living together to keep their money separate.
Ideally, you’ll want to create an income stream so you have control over your monthly income.
When you rely on someone else to give you money and they don’t or you spend it without budgeting, who’s at fault for that?
Lots of couples keep their finances separate even after they marry however that could cause issue if one of you dies.
If your spouse has bank accounts and your name is not on them the bank will freeze the bank account.
10 Reasons People Borrow Money
- Borrow Money To Make Money ex: Borrowing against their home equity to renovate or other business ventures.
- Zero emergency savings or they’ve already used it
- Pay for medical services
- Avoid ruining their credit score or going through the bankruptcy process
- Pay Bills such as utilities, rent and mortgage etc.
- Buy Groceries or Toiletries and other Necessities
- Fix a vehicle, need tires or gas
- Waiting For Unemployment or Insurance Money
- About to be evicted or in default of their mortgage payment
- Broken Relationship
Avoid Discussing What You’re Worth
There are so many reasons why someone would want to borrow money from you or a bank.
What we’ve learned is to limit or avoid talking about how much money we earn or have including family.
Once someone knows you have money saved they will come at you when times are tough.
It’s comparable to people who own a pick-up truck and someone needs to borrow it or have use of it for free.
At least give the owner some money for the gas and time they have to dedicate to your need.
Another example is a homeowner who has a pool and in the summer the same people are always wanting to come over for a swim with the kids.
They don’t bring any food or drinks, lunch or snacks and expect the homeowner to dish out the goodies.
The moral of the story is that nothing is free in life and if someone asks to borrow money and you give it to them, you may never get it back.
There’s a fine line when it comes to reason why people borrow money as there ar toom any to discuss.
At the end of the conversation you hold the dice.
Discussion: Has there been a time you needed to borrow money? Why? Did you learn something from being broke and changed that situation? Share with us in the comments how you overcome being broke.
Recent Blog Posts You May Have Missed
Below is a recap of the blog posts I’ve published in the past week.
In the next week, I will have income tax season posts about Canadian Taxes that you won’t want to miss.
- How To Create A Realistic Monthly Budget
- The Best Realtors To Hire And What To Look For
- Keto Angel Food Cake
- What A Home Buyer Should Avoid Telling A Realtor
- Viral Baked Potato Egg Casserole
- Budgeting Becomes A Habit So Cultivate It
- Definitive Guide To Window Replacement For Your Home In 2021
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SEASONAL FRUGAL RECIPE BOX
Growing up in the UK my mum did all of her own baking at home and sticky toffee pudding was a family favourite.
Although I haven’t tried my hand at baking this in Canada I’m sure one day I will.
I enjoyed how this food blogger added her twist on this favourite Scottish dessert by adding Drambuie.
She also points out that you must use dates for this recipe and it’s a must.
I love dates and buy big bags of them for my viral date squares recipe on Pinterest.
THOUGHTS CORNER BY MR.CBB
While walking home after dropping our son off at school I had thought to myself about how I felt unprepared for life.
There is no manual apart from what your parents teach you and perhaps teachers.
Your manual is like a diary and what you put in it are things that you can control and others you don’t.
It’s the way we learn from experiences good or bad and either repeat them or make them better.
Some people may fall through the cracks but with dedication and effort you can still grow.
Nothing can stop you when your heart is in it.
Break free from what’s holding you back in life and bloom.
SATURDAY SEARCH TERM GIGGLE
These are keywords that readers typed into their search engine and landed on this blog.
I get quite a few of these every single day and pick some of the best to feature right here.
- What are toiletries and laundry? – Interesting search term which may sound like common sense but as I mentioned above life doesn’t come with a manual. This may be a newcomer to Canada, someone who has never budgeted before or someone moving out from their parents for the first time.
- High-Class Grocery Stores Canada – Another interesting search term that may be interpreted in two ways. I’m looking to avoid these high-class grocery stores or I only want to shop at them.
- Can you be charged with theft afterwards? – After what? Going home with the goods? If the store has you on camera with the goods and exiting without paying, most likely. Security guards in most stores follow policies and wait until the shoplifter has left the store and then detains them until police arrive. You could also be detained as soon as you leave the cash register or self-checkout.
- Where to buy big-size food in Canada – Ha, I’m sure they are looking for Costco Canada or any other store that sells family-size or Value sized packaged foods.
Thanks for your continued support of CBB and for helping it grow into one of the top Canadian Frugal Living Websites. You’re the best!
If you have a topic idea or want to share your story respond to this email or contact me directly via email at firstname.lastname@example.org or the contact tab on the blog.