These Two Genius Strategies Will Stop People from Asking You for Money

If you’ve ever had a dollar to loan, you’ve probably loaned out a bunch of dollars. You did this for friends, family and associates. Sometimes you didn’t get paid back, and other times you got yelled at for asking about your money. Those same people still ask for money, and you dig into your pocket, however hesitantly. You likely do this because you feel guilty, or it’s awkward to say no. Here are two genius strategies to stop people from asking you for money.

Give Them Financial Advice

There is nothing a person asking for a loan hates more than financial advice, other than being told no. The difference between telling them no and giving them financial advice is, you still might give them the loan after the advice. However, the next time they’re looking for money, they’re less likely to look your way.

Many times, the person asking you for money might be mismanaging their own. You can determine this in simple ways. As an example, they might live with their spouse, and they might both be employed. So, they have two incomes.

On top of this, the couple probably doesn’t have kids, or they have fewer than you do. As far as bills, they have less of those than you do as well. When you are single and have (or don’t have) kids or bills of your own, you should question lending money to people who don’t have the level of bills you do. They should get money from somewhere else.

Therefore, tell the person needing a loan about financial planning and other funding sources. There are companies like Mark Cuban’s Dave that give same-day microloans. Some give same-day loans in the hundreds or thousands of dollars. If they tell you they can’t qualify for these loans, there’s a reason why. Either way, directing them to a funding source who is not you is the goal.

Let Them Keep the Loan

There’s a chance you know the cold feeling of calling someone who owes you money only to be sent to voicemail. Your calls and texts go ignored, and you don’t ever see your $50 again. This burned you to the core, but you should be thankful.

When someone ducks you because they owe you money, the amount of the loan is how much it costs you to keep them away from you. That $50 they didn’t pay you back will save you hundreds in the future.

Unfortunately for the person who defaults on their loan, time is circular. They usually come back. This time, you’ll point to the loan they didn’t pay back. It doesn’t matter if it has been a week or a year. If they didn’t pay it back, you’ll let them know you can’t loan them any money until they pay back the initial loan. Don’t fall for any excuses.

When they do pay the loan back ten months after it’s due, accept it. When they come back for another loan, remind them that they did not pay you back in a timely fashion last time. Although you’d like to give them a loan, you simply can’t risk it since you have your own upcoming bills. Let your “no” be your “no.”

The Takeaway

You don’t owe anyone a loan, and you can stop them from asking you. Give them financial advice. Send them in another direction. When they fail to pay you back, try to collect, but don’t make it a big deal. Refer to the defaulted loan when they ask again. Just don’t give them your money.

This article was written by Jermaine Reed, MFA, the Editor-in-Chief of The Reeders Block. Join the email list to get notifications on new blog posts and books. This article is 100% human-written. And remember, if you see an error, that’s what makes us human.