"Creditors have better memories than debtors." Benjamin Franklin.
A good friend has been telling me on and off how a friend of his has not repayed a $200 loan made almost a year ago. Well, it could be as good as gone, I said. That got him depressed every time. I would then tell him that he is a poor candidate for a lender.
Is there ever a good candidate for a lender?
Well, I was taught that if we should lend someone money, we must do it with the mindset of a donor.
Yes, a donor.
The only material difference between lending money and donating money is that with the former, the money could possibly come back to us one day.
Of course, if we lend money as if we were donating it, the sum is written off. So, if the money should be returned one day, it is a "windfall"! Then, we would feel quite happy, wouldn't we?
This way, we would not have any anxiety about the loan and we might even get to feel quite happy with a possible "windfall" in future!
This actually happened with another friend who told me that a childhood friend he lent $5,000 to suddenly called him and said he was finally able to repay the loan.
It had been 4 years since the loan was made!
So, what must we remember?
No, it is not the famous quote from Hamlet which goes: "Neither a borrower, nor a lender be; For loan oft loses both itself and friend."
Instead, everyone should learn this as soon as possible in life and remember it well:
If we are not able to lend money with the mindset of a donor, don't do it.
Not enough money to be married.
Lending money to someone your care about? Ask questions!