41 reasons I'm not lending you money
If you fit in any one of these scenarios, don't even think about asking me for a loan.
This post comes from Len Penzo at partner blog Len Penzo dot Com.
Earlier this year, The Huffington Post featured a curious article that attempted to explain why our friends often fail to repay money they borrow from us.
In a nutshell, the piece offered five reasons:
- You refuse to ask for the money back.
- You make it too easy for your friends to ignore you.
- You didn't get the loan in writing.
- Your friends assume that their unpaid debt won't result in a broken friendship.
- Your friends never planned to give you the money back in the first place.
Strangely enough, the author failed to offer the most logical -- not to mention obvious -- reason why anyone would ever fail to repay a loan from a friend or relative: The borrower's a deadbeat.
Truth be told, I have occasionally loaned money to my financially pinched friends and relatives. Not often, but I have.
In several cases, I've offered the cash with no strings attached, because I believed the bind they were in was due to something out of their control.
That being said, if you happen to be a friend of mine who's been thinking about asking me for a loan, keep in mind that your odds of success will be extremely remote if one or more of the following are true:
- You refuse to get a job -- any job.
- You've got a million reasons why you can't work a second job.
- You drive a 2012 Lexus when a 1997 Honda Civic will do.
- You insist on living somewhere with a high cost of living even though your income (or lack thereof) can't support it.
- You fail to understand that debt is a mortgage on your future.
- Your priorities are all screwed up.
- You live in a larger home than you can reasonably afford.
- You refuse to raise additional cash by selling some of your "toys."
- You prefer to blame others for your poor financial situation.
- You're materialistic.
- You fail to comprehend the concept of value.
- You've got a closet full of $200 designer jeans.
- You own a $500 handbag.
- You wear $400 Louis Vuitton Millionaire sunglasses.
- You play the lottery on a regular basis.
- Your teenager drives a brand-new car when a beater will do.
- You think money grows on trees.
- You insist that packing a brown-bag lunch is a waste of time.
- You recently completed an ambitious kitchen remodel even though it wasn't really needed.
- You own five dogs, three cats, a cockatoo and an anaconda.
- You refuse to quit smoking.
- You're woefully disorganized.
- You can't tell me exactly how much money you earn each month.
- You can't explain -- nor do you have any idea -- where your money goes every month.
- You refuse to save money by eating leftovers.
- You believe it's all about living in the moment.
- You just got back from a 10-day Caribbean cruise.
- You have no concept of personal responsibility.
- You failed to maintain rainy-day and emergency funds.
- You own an iPhone.
- You eat out too much.
- You're still sending your child to private school.
- You're a big believer in keeping up with the Joneses.
- You have a gardener. (Never mind that his leaf blower wakes me up every Saturday morning.)
- You just bought another large-screen high-definition television.
- You seem to think that poor planning on your part constitutes an emergency on mine.
- Your spouse refuses to get a job.
- You don't know the difference between a want and a need.
- You've shown no inclination to change your financially destructive behavior.
- You haven't established a credible plan for digging yourself out of debt.
And if that's not enough for you, here's one more: Quite frankly, I'm tired of coddling people who refuse to sacrifice and make the same hard decisions that I do every day in order to ensure I live within my means.
Is that harsh? No -- that's life.
So, now that I've made myself perfectly clear, do you still want to ask me for a loan?
More on Len Penzo dot Com and MSN Money:
- If you can't live on $40,000 annually it's your own fault
- Why your expensive luxury car doesn't impress smart people
- The 50 biggest money mistakes household CEOs make
- How to shop for a personal loan
- How to lend to family and friends
- 7 signs you're a shopaholic
Always. Just say no. Or better yet, turn the tables on them and say something like "I am glad you brought up the subject of borrowing money. I desperately need a loan. Any suggestions?"
I like it.
I'm going to have my brother call you next time he asks me for a loan...
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