STOP GIVING LOANS FROM YOUR SAVINGS

 

 Have you ever given someone a loan before? We all have. Did that person return the money when he/she promised to do so? Some did, but many did not. I make bold to declare that we all have had more experiences of people defaulting on their debts than liquidating them. There are even instances where debtors pretend to have forgotten that they owed someone or downright refused to repay.

One would think that with the decay in moral values regarding money today in our society many would be careful with their hard earned money. Sadly this is not the case. Many of us are suckers for a good “person in need” story.When you also consider that it is those who are close to us who come to us it can be extremely difficult to say no. This is Africa; we are known for being our brother’s keeper.

Giving loans is definitely not in your best interest. This is because most times you are loaning out your savings, monies you have kept aside that should be used to multiply into wealth for you. You cannot give a loan to someone from that part of your income meant to take care of your living expenses because it is too risky. How would you survive the month if the person defaults? Thus you take from your savings to help others.

The painful part is that many people experience disappointment as the funds are not returned as at when due; or alternatively they are returned in so many small and delayed installments that the money ends up being frittered away because it is no longer substantial. One can never become rich by constantly depleting your savings to help others.

This is precisely one of the major reasons why there are squabbles in many families. Negative emotions begin to run riot in the minds of creditors when their loved ones default…anger, hatred, disgust and disappointment. This is definitely not healthy. Money happens to be one of the major reasons for divorce and disaffection in many families.

One also needs to stop trying to play trying to play the role of banker in the lives of your loved ones and associates. The banks are extremely knowledgeable when it comes to the business of granting loans and have put systems and procedures in place to ensure they recover their money. Sadly the same cannot be said of you. You would be well advised to leave the business of giving loans to them.

A more satisfactory approach would be to give anyone that asks you for a loan a cash gift instead. Give them an amount that they do not require to pay back. Ensure that this is an amount that you can afford to give away. This frees you from the feeling of guilt that may arise if you completely ignore pleas and cries for help.

Giving cash gifts is actually one of the secrets of the wealthy. They do not invest substantial sums into the lives of others in the form of loans, rather they give what they can afford, thereby putting their funds into more profitable ventures.

Set aside some funds monthly for this purpose in your budget which can be termed, “Donations & Gifts.” Tell everyone that comes that it is your personal policy not to give loans; rather you give donations which they do not have to repay. There is almost no one who would refuse to get something for nothing. They will take the gift and go to someone else to give them a loan and you will still be in their “good books.”

The more you invest into ventures that will grow your wealth the richer you will become. No money earned is ever enough so we must plug all the leaks and loopholes and free up money for investment. If one spends all he earns or loans out his savings poverty will be the end result. Stop this  unwholesome practice today and begin to see a wealth exchange transfer come into your life as you invest the freed funds wisely!