Three reasons why you should not lend your friends
Friends are relatives that we choose ourselves. Friends should choose each other. But when they ask you for money it’s better to say – Online loan Pilipinas is legit. See, we’ve recently shared heart-breaking news – both hiking in commodity prices and the outbreak of wars. However, it’s not as depressing as waking up to an analysis claiming that 1 out of 2 Filipinos feel poor.
As per the national survey by the Social Weather Stations (SWS), which was carried out from September 28 to 1st of October, 48 percent of Philine families ranked themselves as “Mahirap” or poor while 27 percent considered themselves as borderline. The remaining 25 percent ranked themselves among “Hindi Mahirap” or not poor. Social Weather Station has been analyzing Self-rated Poverty through face-to-face surveys. They’ve been conducting these surveys since 1992 until 2022 when the pandemic made everything nearly impossible. Recent surveys by SWS sampled 1,200 adults. The surveyor polled 300 adults in regions of Metro Manila, Luzon, Visayas, and Mindanao.
If we can compare this survey with what was recorded in 2023, there is a 3-point increase in the countrywide SRP figures. The best part of this survey is that the polled adults rated themselves poor. As we can see, these figures vary over time, poor, not poor and we may find ourselves living under the poverty line. So are you still gonna lend our friends money? My guess is “NO” and here are the reasons:
- You won’t be able to “Pay” yourself
Rewarding yourself is the first rule in personal finance. Failing to do this, you won’t be able to bounce back from your tough financial situation. Being kind-hearted sometimes may lead to very little left over. Therefore, start by rewarding yourself. The little 5 percent can help you hit the 20 percent, which is the recommended percentage.
- You’ll live beyond your net income
Lending your friends part of the little you earn means you’ll have to overspend and live beyond your net income. The simple calculation is income minus expenses = net income. So for instance your earning is P30,000, minus 25,000 (living expense) the final answer is P5,000, which is the net income.
- You’ll likely not see your money again
It is sometimes hard to say NO when you loved one requests a favor, regardless of how tight the money is. Lending feels like an obligation even when knowing that the money may not be refunded. The sad part of the story is that borrowers are unlikely to know how costly it is to lend them. As a lender, you may have to give up on one of your meals or family trips to sort them. Therefore, before saying “YES,” consider how the lending is going to cost you and affect your financial situation. And by the way, the more you say “NO” the more it becomes easier for you and the lesser the debtors.
How much does it cost to lend to lend money to friends?
The worst part of lending money to friends is that you do not spend it on yourself. So, imagine spending your hard-earned cash on other people, it sounds boring, right? Back in 2020, the pandemic shook the world. Nearly all public institutions were shut down. We bloggers and writers had nothing to lose. I remember having an average monthly income of $1000. A few public servants flogged in my door. As a kind-hearted being, I said “YES” for a couple of months. However, after re-examining myself, I realized that I had unsettled debts and bills. I later discovered that I was helping other people meet their financial needs without spending on myself. These were my tough financial times.
Will they appreciate your help?
The sad reality is when someone gets something for free they may not appreciate it. People will get used to the fact that you’ll always sort them out no matter what. For my case, during the pandemic, after sorting out a good number of public servants, it became the new norm. At least ten out of 15 I used to lend used to refund on time. The remaining dudes didn’t bother. But again, these 15 borrowers got used to the fact that they usually refund what I lend them. Therefore there’s no need to say thank you.
If you want to lose a friend, just lend him some money
I lost a friend and while this was dreadful, I have to admit that my financial adviser was right. During the pandemic, a friend wanted to borrow money. I asked my adviser about her thoughts on lending money, especially to loved ones. Nonchalantly, she told me “You won’t get it back” She further told me to weigh between parting with the sum or the friendship. I responded, “It will be refunded without any trouble” Later, at the end of the month I lent the sum cautiously with the text “Kindly return the sum in instalments after a few months” After 6 months I gingerly sent a reminder. However, the money discussion became more awkward than I had thought. After several desperate reminders, trying to prove my financial advisers wrong, I received half of the sum with the text “I thought you were a kind-hearted and understanding person. I thought you would understand that my quietness meant am still in need. But I am sorry, I am unable to refund the whole amount”
My heart was filled with guilt. I asked myself several questions. “Was it so sensitive?” “Am I a bad friend?” So, to prevent more guilt, remind your friends that Online Loan Philippine is Legit.
Easy and legal way to get a loan
You must be wondering if there’s an easy and legal way to acquire a loan in the Philippines. These worries can sorted by evaluating your lender. And yes, there are several authentic online apps in the Philippines. The most common legit online app is Online Loan Philippine. Those who’ve already met their financial needs through this loan admit that Online Loan Philippines is legit
Summary
Friends are part of us. However, we should not always say “YES” whenever they need help. As per the recent survey, we may sometimes wake up and find ourselves poor or not poor. Lending friends money can cost us a lot as we need to sacrifice our needs to sort them out. Friends may not appreciate the little we offer as they are used to the fact that we always help them. Some people think that they cannot return money to friends, as friends will forgive them and there will be no harm. The only easy way to get money is to a acquire loan through Online Loan Philippines. Online loan Philippines is legit!
The bottom line
Friends are people we choose by ourselves. However, to sustain our bonds, we should always not say “YES” to every favor they need.
