Money and Family Members- The Extended Family

This is a sequel to the first post on money and friendship (Get it here), in this post we are considering your personal financial relationship with your family members, with an eye on the extended, say your Brothers, Sisters, Cousins and the like.

Just as Money and Friendship do not mix well, same can be said of Money and this family members, a lot of people have got their hands burnt for lending money to family members who will not return and will still be arrogant about it. 

It is sad to say that this experience is so rampant in our society, that it is causing strains in family relationships. Once told of a friend who got a loan for his sister from the Bank and she did not pay back and did not inform the younger one on time until the loan had accrued so much unwarranted interest, another friend of mine bought a new Bus for the brother for joint business and he did not bring any returns and even had the effrontery to come and request for funds when the Bus broke down. I can go on and on with examples of Family members who think they have played the smart one on us with our hard-earned money and this has made a lot of people not to easily get financial help from family, that not to say we do not have genuine family members who will pay back and can be trusted with money or a money spinning business, I have come to find out that they do not mix well often as we can tell one tale or the other. I have outlined a few principles which I think we can work with to protect ourselves from this scavenger, the truth is they are in all families, if you will only be real with yourself.

1)      The first rule is do not lend what you cannot afford to lose: follow this principle, as it will save you from unnecessary heartaches, you do not need to tell the person you can lose the funds.

2)       The second rule is on trust and sincerity. Trust is never given it is earned, so let them show they can be trusted, who have not being proven should not be trusted blindly when it comes to money issues. Let them show you that you can trust them with a little funds before you entrust them with bigger funds.

3)      Thirdly, get the full details of what the money is needed for and if it’s a business, let them come with a proposal in black and white. You may appear difficult but it helps to keep away those who cannot defend their request from you.

4)      Fourthly, involve a witness, especially a more matured family member in the transaction.

5)      The last but not the least is never be afraid to say No and stand by it.

You can add more as this principles are not a cast in stone, and you need to protect yourself from financial pests be it a friend or a family member, the next post will still be on our money and relationship series.

I remain your friend and Personal Finance Coach Babatunde Ayorinde, follow me on twitter @pistis03,
And if you like to engage us to speak in your program or for adverts send us a mail at babat09@gmail.com.
Thanks for reading, invite you Family, Friends, and Foes to read the blog, as we move ahead to our financial freedom.