You created your Money Management Flow Chart and you are enjoying your financial freedom, however there are still a few things to consider. With success comes envy. With success with managing money comes, borrowers! In the midst of your financial growth you experience family and friends requesting a loan. What are you going to do? You are going to do what any loving family member and friend would do: give it to them. The questions are how much money and where are you going to get it without damaging yourself?
One of the worse things to experience is being approach by someone you love that is looking for your help and you can’t help them effectively without damaging yourself. The solution is simple. Create a Money Management Flow Chart! You’ve create a Money Management Flow Chart of your own, help create one with them before you give out any loans. It should be a requirement before you lend any money to anyone. I believe that it’s not the lack of money that’s the issue, it’s the way you manage your money. One of my favorite quotes by Suze Orman is “Respects Attracts Money - Disrespect Repels Money”. When someone comes you expecting you to help him or her, first create a Money Management Flow Chart. That may not solve their immediate problem, but you are pointing them the right direction.
Where are you going to find the extra money? You may have to create another account.
Loan Account
In this account you elect to set aside 1% - 2% from your Main Account for loans. For example, if there is $700.00 in your Main Account, $7.00 (1%) or $14.00 (2%) is set aside to lend.
That’s all! A good idea is to create a promissory note whenever you are loaning money to anyone. Negotiate interest and a repayment schedule with every loan you lend.
Do not lend to repeat offenders. A Money Management Flow Chart and a loan should help your loves one get on the right track financially.
When you can afford it, hire someone to manage that account, an independent source. So when your beloved family or friends tell the independent source the “story” of why they need the money, emotions wouldn’t cloud sound judgment.
You may experience individuals who cannot meet the agreed arrangement; you may need to seek legal assist to retrieve your money. Unfortunately that would have to come from the Loan Account. So the more you have to spend on legal assistance the less you will have to loan.
You will be able to enjoy your financial freedom and provide assistant to your love ones without damaging yourself financially.
One of the worse things to experience is being approach by someone you love that is looking for your help and you can’t help them effectively without damaging yourself. The solution is simple. Create a Money Management Flow Chart! You’ve create a Money Management Flow Chart of your own, help create one with them before you give out any loans. It should be a requirement before you lend any money to anyone. I believe that it’s not the lack of money that’s the issue, it’s the way you manage your money. One of my favorite quotes by Suze Orman is “Respects Attracts Money - Disrespect Repels Money”. When someone comes you expecting you to help him or her, first create a Money Management Flow Chart. That may not solve their immediate problem, but you are pointing them the right direction.
Where are you going to find the extra money? You may have to create another account.
Loan Account
In this account you elect to set aside 1% - 2% from your Main Account for loans. For example, if there is $700.00 in your Main Account, $7.00 (1%) or $14.00 (2%) is set aside to lend.
That’s all! A good idea is to create a promissory note whenever you are loaning money to anyone. Negotiate interest and a repayment schedule with every loan you lend.
Do not lend to repeat offenders. A Money Management Flow Chart and a loan should help your loves one get on the right track financially.
When you can afford it, hire someone to manage that account, an independent source. So when your beloved family or friends tell the independent source the “story” of why they need the money, emotions wouldn’t cloud sound judgment.
You may experience individuals who cannot meet the agreed arrangement; you may need to seek legal assist to retrieve your money. Unfortunately that would have to come from the Loan Account. So the more you have to spend on legal assistance the less you will have to loan.
You will be able to enjoy your financial freedom and provide assistant to your love ones without damaging yourself financially.
Next: The Essentials: Elements of "Kickin' It"
1. The Essentials: Elements of My Money Management Flow Chart
2. Advanced: Elements of My "ADVANCED" Money Management Flow Chart
3. Project Account - Credit Repair
1. The Essentials: Elements of My Money Management Flow Chart
2. Advanced: Elements of My "ADVANCED" Money Management Flow Chart
3. Project Account - Credit Repair
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