In fact, repay them as early as you can, rather than only on the agreed upon date.Know that your friends/relatives took the leap of faith and lent you money where others probably wouldn’t, so you don’t want to let them down. Think carefully using the guiding points above, and good luck! After that, I just became more evaluative about lending money to people in general.I share this to let you know that money matters can often change the dynamics of a relationship—friendships included.

Live up to their faith in you and be reliable on all counts. They expect you to help them out if it means they can avoid delving into their own wallet.They know that you’re happy to keep them financially stable – and so they assume that perhaps you’re more well off than they are. Personally I would be very careful about lending money to someone with a history of bad money habits and an extravagant lifestyle, and especially someone who has shown him/herself to be unreliable. While it may take you a while to realise this, it’s doubtful that it took them longer than a couple of loans.And because of this, people start to push their luck. And another 40% comes from friends and neighbors. Relationships are not black and white and everything needs to be looks at within context.’So basically, relationships built on one or the other’s money are rarely healthy, with power imbalances leaving you stressed and your friendship in tatters.It’s so important to be able to acknowledge when you’re being taken for granted so that it can be nipped in the bud as soon as possible – and a good way of doing this is to keep track of how much each of you are actually contributing financially to the friendship.If it’s always one-sided, that’s something that needs to be discussed.Whatever you do, always remember that a friendship should always be built on a foundation of trust – and that’s easily taken advantage of if someone feels they can get away with it.While it may be easy for some to say ‘no’, for others you feel guilty, as if you’re letting your friend down or leaving them worse off. Here are seven ways to turn down a request for money. And seriously, shame on him/her.Don’t feel bad for lending the money to him/her, because you did it out of goodwill. They’re your friend, you know they’d do the same for you, and so it’s totally fine.But you know what’s not okay? For example, he would dine at restaurants rather than food centers which are more budget-friendly. A message allows you to be direct without having to confront your friend. But becoming their financial backbone?

You want to help, but at the same time you don't want to complicate your own personal finances. Borrowing money off your friend is usually fine.

Never This is something I have learned from my experience loaning money. “Can we work out a new repayment plan which you will be able to meet this time?” or “Can I share some advice on better money management?”) rather than blaming the other party.If the person scooted with your money, then… I’m sorry for your predicament. He would regularly buy new things for himself and others. Almost as if you’re letting your friend down. Don’t lend large sums at one go, unless you are really close to the person and you know the money is being used for legit reasons, such as emergency hospital bills.Don’t let this bad experience scar your views on friendship and on loaning money though. It also didn’t help that my dad kept reprimanding me for loaning the money out, since he himself had loaned money to someone before (a large sum) and never got the money back.Just when I resigned to never getting my money back, my friend finally returned the money to me one day. I recently read that 42% of the money that people use to start a small business comes from close family members. Let’s say the pair of you are going out for lunch and you realise you’ve left your purse at home. One bag egg does not mean everything in the basket is bad.For those of you who are borrowing or have borrowed money from others, repay them in a timely manner. Money can often change the dynamics of a relationship, especially in an Asian culture, so think carefully before lending money. That’s because when someone loans money, I consider this an act of goodwill, and I would never want to betray this trust. Ideally, you have some written document that can prove he or she borrowed money from you, how much, and on what date. It depends on your personal financial needs and your relationship with this person. We have to evaluate their request within the context and the dynamics of the friendship and what it means to us, also within the context of our friend’s circumstances.’She continued: ‘Is our friend dealing with an unexpected life event that has thrown their finances out of keel at the moment?

There are still good people out there and there are people who genuinely need to borrow money for emergency reasons and will do whatever it takes to honor their repayment plan after receiving the money. Only loan the amount you feel comfortable with loaning.

No bother, you can always pay them back later.Same goes for if your friend asks to borrow £20 until next pay day.