Has money ever caused tension between you and those you love? Have you ever loaned money to a friend or family member and didn’t get paid back? If so, you are not alone. Here I will go over some do’s and don’ts when it comes to relationships and money.
Should I co-sign for a friend or family member?
According to a study done by Federal Trade Commission over 75% of people that co-sign for someone else end up paying the bill themselves. The reason a lender requires or requests a co-signer is because they think there is a possibility that they won’t get paid back. Proverbs 17:18 says “A man lacking in judgment strikes hands in pledge and puts up security for his neighbor.” I don’t know about you but this seems like a bad idea.
How should I go about handling money with my spouse?
The greatest lesson I ever learned in regards to relationships and money is that you need to sit down with your spouse and do a budget together. This budget needs to be done every month and both people need to have equal say in where the money goes. Marriage is all about self-LESSness and you will have to come to an agreement on the budget. Once this agreement is made you need to understand that you are making a commitment to your spouse that you will fulfill your end of the bargain. If you don’t, you are breaking the trust of your spouse and it will cause damage to the relationship.
To avoid having this happen, make a budget that is realistic and that will make both you and your spouse happy. I have found that doing a budget with my wife has been an amazing bonding experience. We have the same goals in respect to our finances and that brings us closer together. We desire to get out of debt, save, invest, and give; Coming to agreement on this is one of the best thing we have ever done.
Should I loan money to a friend or family member?
Have you ever borrowed money from a friend or family member? I have and I found that it changes the dynamics of the relationship. Proverbs 22:7 states “The rich rule over the poor, and the borrower is servant to the lender.” When you loan money to someone, in essence they become your servant. They will spend their days working in order to pay off their debt to you. I have personally had relationships that were damaged because I loaned money to people and they didn’t hold up their end. The simple answer to the question at hand is NO.