Money is an integral part of human life, touching every aspect of human existence. As old as money itself is the art of lending. From the dawn of commerce, people have lent each other money and that trend is not about to die. Financial institutions lend us approximately 8 billion shillings daily, showing how much lending is entrenched in our lives. Though financial institutions have no qualms about lending us money, a good percentage of that lending occurs informally between family and friends. This informality is sometimes necessitated by the idea that lending folks we know, is better for reasons known only to psychology and Advanced Economics. At other times, though, ni kwa sababu wako CRB and thus banks, for a lack of a better word, hate them.
I’m going to assume that you have friends and family and that means that at some point you’ve had to lend. Lending to family and friends, like everything in life, is not expressly good or bad, but rather like a pendulum swings from good to sometimes absolutely crazy. Thus, as you prepare to lend, you must be aware of the three sides of the coin of borrowing, from the smile-inducing to the cringe-worthy.
Fostering deeper and more meaningful relationships
Lending money to family and friends brings people closer. Probably much closer than love. Show me a man who professes not to love money, and I’ll show you a seven-wheel car. They just don’t exist. Lending money if done right has the likelihood of forging and fostering meaningful relationships amongst family and friends.
This is because lending money usually is preceded by a given set of problems and therefore when someone comes to you umsort, and for some crazy reason you do it, then to them, you are a god. You become their hero, to the extent that they might even die for you just as long as they don’t lose their lives.
Further lending money provides you with a platform to teach your potential borrowers about issues such as prudent money management, and financial responsibility. Treat softly on this last one. Nobody likes to be lectured, no matter what their certificates say.
You might be lent when you need it
Lending money to friends and family sets you up, but sometimes not in a bad way. We all need help. It’s our nature. No human is complete unto themselves unless they’re a work of art, which of course, they’re not. Needing and, most importantly, getting financial help can be as painless as it can be but only if you also help. Being approachable, and lending people money now and then, will enable you to get help when you need it.
However, and I cannot stress this enough, never lend to borrow in the future. If that’s your plan, then I suggest that you procure yourself a nice, big fat vale to fill with your teary disappointments. Humans are funny and some are selfish, only happy with what they can gain. Thus, if you’re prepared to lend do not expect to be lent.
And if you’ve tried to borrow from family and it’s hit a wall, head over to our website or download our app from the play store and register for a Salary Advance. We will sort you out because we understand that sometimes you need the cash.
Repayment might never come
We’re African. Those two words have multiple folds of hidden meanings that if unraveled can spawn books that could fill the whole world. In the financial context, they mean that how we act in and around money is very different. Money borrowed from family is sometimes never to returned. And that’s that. No matter what financial websites preach and exhort, telling you how you should hammer out a repayment plan with your family before you lend and other financial jawing, we know that it’ll never happen.
When lil’ bro tells you umsort atakurudishia baadaye, consider that money gone into the ether. That baadaye might occur in the post-apocalyptic world. And when you start hounding him to repay you, brandishing the repayment plan, then you and your money might become the subject of intense study, producing subject matter experts into pockets of your life you never knew even existed.
So, when lending money, especially to family and friends, you should be aware that it’s not a boomerang.
You might go broke
We all love to help but even as you do, you must be careful that you do not over-extend the reach of your finances. Nobody (except sadists) wants to see their loved ones suffer, especially if they can help it. When friends come to you with a certain problem asking for a small loan, you might be inclined to lend. After all, that’s what friends are for.
If you extend help further that it was designed to go, the likelihood of going broke and landing in debt out of the goodness of your heart might be a real possibility. Too much of a good thing, as they say, might not be good for your health. Be careful.
You might be resented or even hated
The fastest way to ruin a perfectly good relationship, be it family or friends, is to ask for ile pesa nilikusaidia. People LOVE borrowing, but absolutely loathe paying back. This is more so for money borrowed from family and friends. Social media is awash with overgrown tales of money borrowed and not repaid. For some reason, not yet understood by academics, people are comfortable paying bank loans without batting an eye, but turn into thermonuclear warheads when it is time to pay what they borrowed from family and friends.
So, when you extend a loan to Brayo, know that wanting it back might not only irreversibly damage your friendship but also subject you to a resentment that stinks to the high heavens. God might buy have to buy an air freshener.
Nobody might lend you when you need it
Lending money to family and friends distorts the lens they use to view you. They’ll think you’re rich and rich people never need financial help, right? When the title of the Family Bank has been unofficially conferred to you, Mon Ami(e), you’re doomed.
When you lend, therefore, beware that people are not inclined to be as compassionate as you are. But, as the Good Book says, blessed is the hand that gives. Give freely but only if you can afford to lose it.