Expect to Lose When Loaning Money to Friends

The occasional fiver for a burger, or an occasional toll—that's one thing. But if a friend really needs money to get by for a bit, you can loan them money—just only loan what you can live with losing.

Image via nerdcoregirl.

April Dykman writes at the Get Rich Slowly blog about her personal experience lending money to a friend who managed to hit a host of bad luck and sad situations all at once, needing a bit of cash to pay the rent and get by another month. Dykman, after talking it over with her husband, went against the advice that basically everybody gives when it comes to money and friends. But she had rules.

I expected to not be repaid, and only loaned as much as I was willing to lose. My husband and I agreed that we would view the money as a gift, not a loan. If she paid us back, fine. If not, fine. I made it clear that we weren't expecting repayment.

Dykman also tried to help the situation itself, reaching out to get the friend's boyfriend a job.

What have you done when friends are in financial need? Do you try to cure the problem, or help in a sensible way if you can?