Everyone has the experience of lending money to others.
Maybe your friend is looking for you for help and telling you that he is in dire need of money.
Or maybe your relative wants to start a business.
He/She would like to borrow money from you to get started.

Every person who borrows money from you keeps telling you that he will pay you back when he makes money.
But the most common cases are:
After half a year, a year, or two years, you still haven't received the principal and interest you should have received.
They always ask for an extension with various reasons.
In the end, the interpersonal relationship between the two sides was ruined.

If someone wants to borrow money from you, it is best to lend it to the following types of people:

1. Lend money to someone who has collateral

When he pays back the money, you will return the collateral to them. If you don't get the money back, you will sell the collateral to pay off the debt.
All these collaterals tell you that it is safest to lend money to people who have more assets than the loan amount.
These people own property such as land, houses, cars, jewelry, etc. Or other things that can be used to repay the debt. You will definitely get back the principal and interest.
Because the borrower has enough property to guarantee the loan.

2. Lend money to people who have the ability to earn money

They have a stable income just like you.
If they have good integrity and have not encountered any unfortunate events.
They should be able to repay the principal and interest as agreed.
When you lend money to such a person,
He used his labor as a guarantee.

3. Have someone you trust to guarantee your loan

Except for those who have collateral or the ability to make money, unless they have someone they trust to guarantee,
Otherwise, you shouldn't lend them a penny.

In addition, it also depends on the purpose of the person who borrows the money:

1. Consumption or enjoyment

If he borrows money for consumption and to buy things for enjoyment,
There is no need to lend it to him.
For example: If he borrows money to buy a house or a mobile phone,
In order to enjoy material things beyond one's economic conditions,
There is no reason for others to pay for him, right?!

2. Doing business

If he borrows money to make money, you shouldn't be lending to him right away.
If borrower wants to borrow money to open a restaurant business,

You should ask:

How much do you know about this business?
Can you cook? Where can you buy cheap ingredients?
Do you have experience in the service industry?
How to attract customers to dine in the store?
Can you answer these questions in the affirmative?
If not, it would be unwise to lend him money.
It is not realistic for a person who has only a vague understanding of the business he wants to run.
No matter how ambitious he is, the chances of success are slim.
Lending him money would actually harm him.

3. Emergency

If he borrowed money for emergency,
For example: His/Her child is sick, needs to see a doctor, and needs money urgently.
This depends on your own ability and your relationship with him.
If it is within your ability and does not affect the sound or quality.
You can lend him money.

4. Received help from others

Another example: The other person has helped you and taken care of you before.
In any case, this should be a timely help.

But at this time, borrowing money is no longer a question of whether it is worth borrowing.
It's whether you want to help him through this difficult time.
When repaying a loan, you should expect that you will never get it back.
If you borrow it, it is like giving it, and then it is gone.

in conclusion:

1. Act wisely and within your means

It is a good thing to help those who are in trouble or in misfortune.
It's also good to help people who want to start their own business.

But you should act wisely and within your means.
Otherwise, you will end up causing trouble for yourself while you were trying to help others.

2. Be cautious when lending money to others

The wealth you accumulate through work belongs to you.
No one can force you to lose this money.

If lending money to others can help you accumulate wealth,
Be cautious when lending money to others.

3. Use the extra money to serve others in need and help them succeed

You don't want to risk losing money.

You become a lender yourself because you want to use your extra money to serve others in need. To help them succeed.

4. If you are not sure that the borrower can repay the principal and interest as agreed, you should not lend money to others.

You don't want to lose your wealth because it is the money you have saved by living frugally and restraining your desires.

So if you are not sure that the borrower can repay the principal and interest as agreed, you should not lend money to others.

People are eager to borrow money when they don't have enough ability to repay it.
Usually they fantasized that they could make a fortune as long as they borrowed the capital.

But most people are unwilling to put in enough effort.
To realize these dreams.

People who are not good at managing money can easily let wealth slip away from their hands.
Giving money to such people is like letting others squander your wealth for you.

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