Posted by Tim Stobbs on December 19, 2006
Well yesterday I broke one of my primary rules around money. I gave a loan of money to a friend.
To date I never given out a loan to a friend. In my mind it is just asking for something to go wrong and money is not worth losing a friend over. In fact, I know a friend in Alberta who is very well off who has helped a number of friends over the years. Almost every loan has ended badly.
So why did I break my rule? Well in this case the money is already partly his. You see I have a fund setup which a group of friends pay in to each month. That way when we see each other we just deduct the expenses for dinner out from the fund. The fund is a bit over sized right now, so I talked to the other members a while back about giving the gentlemen in question a short loan to buy an engagement ring. They all agreed.
So I’ve given out a loan, but in reality I only put up about $500 of my own money. Payment terms are set and we get to know about the engagement about a week ahead of the world. I’ll let you know how it turns out.