Money is an essential part of every human being’s life in the current growing society. One needs it for daily necessities and for supporting one’s life goals. It is used to pay off so many things like food, bills, or other personal items. But when it comes to managing it many fail to do so. Here, let’s know some Good Reasons to Ask for Money.
Every normal human being had needed to borrow money at one point in their lives. The reason might be bad management of finances or an emergency or something else. Whatever the excuse may be, money should be borrowed from others only when the situation is out of one’s control or the excuse is good enough.
Definition of Money
Money is defined as the object accepted as payment for goods and services as well as for repaying debts. It comes in three forms in the modern concept:
- Commodity money
- Fiat money
- Fiduciary money
Function of Money
The money primarily has three functions. They are as follows:
- Medium of Exchange – This is when money is used for exchanging goods and services.
- Unit of Account – This is the standard numerical unit for measuring the market values of goods, services, and other transactions. For this money must be divisible into units that are really smaller without causing any losses in value, fungible, and be of a particular size to be countable.
- Store of Value – This is possible when money is stored, saved, and retrieved. The money’s value should remain the same always.
Who to Ask Money from
Asking for money often hurts the individual’s pride. No matter how serious the situation they are in when they have to ask others for money it hinders their self-confidence. One usually borrows money from parents, relatives, friends, or co-workers.
There is also the fact of asking for a raise in one’s office. In office-related cases, it depends on the individual’s worth and capabilities. Then it is entirely his/her right to ask for a raise in salary.
One can also ask people for money for donations and fundraising activities. Then it is a completely selfless reason and for a good cause.
The people one can borrow money from can be divided into three groups:
- Close people – It is hard to borrow money from people one is not close with. They will less likely give a helping hand when in need. It is easier to talk about financial matters and ask for help from the ones the individual is close to. The conversation would also be more comfortable. But the downside to it is that not paying in time may cause complications in the relationship.
- Rich people – The person one can borrow money from should have enough to spare. Asking money from financially unstable people is not right or ethical. It would be too selfish, inconsiderate, and inappropriate. The ones who love spending money on things like a designer and branded clothes or fancy restaurants are such kind people.
- Money Lending People – Some people lend money but expect to be paid back in time with some added interest to the original amount. It is one kind of loan but from a person instead of a bank. This option is only for when there are immediate situations and the individual is in dire need of money. But the most important thing to be kept in mind in such situations is if one is late in paying back then the interest would increase as well.
How to Ask for Money
There are a few tips one must be aware of before asking their friends or family for money. Some examples are as follows:
Personal finance is a sensitive topic that everyone does not like to disclose to others. But if an individual plans to get help financially then they need to be honest about their money situation as a show of willingness and humility.
The one lending would want to know the exact reason and how the individual plans to spend it. The facts are what one needs to disclose instead of making up stories. Only then can the one lending their money can understand the risks. Transparency would guarantee trust between the two parties.
- Essential Cost
It is advisable to ask for money in case of actual emergencies such as accidents or sudden health problems. The money borrowed should only be invested for solid reasons like education or residency.
Spending the borrowed money on less important stuff like investing in stocks or buying branded products should be avoided at all costs. Also, the money borrowed should be a reasonable and comfortable amount.
It is necessary to treat the loans from one’s family and friends in a similar manner if had been from an outside source like a bank. An individual should document all the details reading a loan such as principal, interest rate, terms and conditions, and installment frequency.
This would reduce any future misunderstandings. It would also ensure the party who lend the money of the loan’s repayment time. This also includes the records of extension of the repayment period or relief on being unable to pay the whole amount.
In case the money borrowed is very little this can be avoided, but it is just a safety measure.
- On-Time Payment
The most important thing to do after lending money from someone is to pay back in time. One should be professional in terms of payment of their loans instead of making excuses.
The moment one lends money from someone they are close to, they turn the personal relationship into a business relationship. It is also advisable to pay off the loan earlier as possible.
Such an attitude would not only please them but if similar situations arise in the future they would provide monetary help again.
In case one is unable to pay up in the time they should not avoid the lender. Instead of hiding from them, one should maintain constant communication. Unlike hiding that gives a bad impression, proper communication would help show one’s honesty and sincerity.
If the topic of repayment comes up or if the lenders start asking for the money back, one should avoid getting agitated. They should imagine the scenario from the lender’s perspective. The individual should pay back even if it’s a little amount giving the lender the trust of paying the rest soon as well.
- Helping Back
The situation may be the opposite next time. The relative or friend may need financial help and one should return the favor. They should offer help and resources when such a situation arises.
Even if it borrowing money from them had been a loan with interests or caused strains in the relationship, one should help them. After all, they were there when the individual needed help despite their shortcomings. This would be a show of kindness and a favor returned.
Good Reasons to Ask for Money
When borrowing money be it from friends or family one should have valid reasons. Personal relationships are unlike professional ones. They are more valuable and meaningful in people’s lives.
Reasons to Borrow from Friends
Friends are like family who are not related to one by blood. Borrowing money from them has both pros and cons. While there is flexibility in the repayment of the borrowed money it can also cause strains in the relationship. The risks should be kept in mind and only when the excuses are good enough one can receive financial help from them. Some such examples are as follows:
- Tax or Legal Fees
When one buys a house with its legal fees more than the budget or when one needs regal representation they can their friends for help. They can ask for financial help for the extra or unexpected costs.
If they decide to take loans from any bank with huge interest rates or using their credit cards, the individual can consider assistance from a friend. Such a level of transparency and honesty would provide a good enough excuse.
- Repairing Cost
One might need to borrow money for repairing purposes be it for a home emergency or a car. Due to some natural disaster or simply because of time, a house may need immediate repair in some parts.
These repairs are good enough reasons for borrowing money from a friend. The external situations that cause the damage are absolutely out of human control and hence one needs financial help to overcome such challenges.
- Emergency Travel
One might need to take a sudden unplanned trip for cases like sickness or death of a relative. Such unfortunate events are always sudden and without any prior plans, they are usually expensive.
One can borrow money from their friends in such emergencies as it does not serve any personal interest. Avoiding or not attending such family emergencies for events like funerals can cause problems and even end relationships with the family members.
- Loss of Job
Losing jobs by getting laid off or fired is one of the most unfortunate events in anyone’s life. Paying bills and other daily expenditures can not be done anymore.
When an individual is left with very little savings and no more income, it is a good idea to seek help from friends. There is no chance of getting loans from any banks when one is unemployed.
It is one of the most common reasons one borrows money. It is most likely they will get the financial help they need since everyone has gone through similar situations at one point in their life.
- New Home
When one finds a new home, whether it is an apartment or a house with a lawn, there are extra expenses besides the house price. Hiring a moving company is not cheap at all.
There is also the case of buying new furniture or remodeling costs that are essential. It is okay to take a small loan from a friend to cover the moving costs.
Friends would be very likely to fund such things since they are fully aware of how the money is being spent and can even be a part of the whole process.
- Small Business
If an individual is a small business owner then they are probably aware of the difficulties of keeping the business afloat in an economy that is so volatile. There is mostly very little left for one after paying the salaries and other business-related expenditures.
In case one exhausts all the business-related formal financial options, they can ask for a loan from their friends. This is only to keep the company from shutting down during the recession period.
Any friend rooting for the person’s success will understand the problems and the chances of getting financial help would increase. The business plan and strategy for recouping costs will only add to the person’s luck.
- Credit Card Bills
A lot of debt on the credit card decreases one’s credit score making it impossible to take out loans in times of need. Such instances can be avoided by paying off the bills and keeping the credit score from plummeting.
There are times a person is just not able to pay the bills and to halt the rising debts on their credit cards, they can borrow money from their friends. This would prevent the cases of missed payments and maintain the credit score.
Reasons to Borrow from Family
When it comes to financial problems, a person turns to their family at first. Family members are more willing to help in such times of crisis. They have the patience and understanding of the situation. Some reasons one can borrow money from them are as follows:
- Tuition Fees
Ever since childhood t is the parents or the family who pay for a kid’s education. All they wish is for their kids to excel in their studies and choose a good career path for themselves in the future.
This is never cheap especially college tuition fees besides the school fees. Besides the high tuition cost, there are also other expenses including books, transportation, living costs, etc.
College students take out loans from banks for their education-related costs. They then go on spending their lives trying to pay it off. Families can help pay for the tuition in such cases.
Accidents and illnesses are always sudden in everyone’s lives that would land one in a hospital. Hospital and medication bills can easily lead one to spend all their savings and even acquire debts without any health insurance.
Such high-risk debts can be avoided by borrowing money for hospital expenses from friends and family. Physical and financial recovery can be made through this.
Family members are always worried about the individual’s wellbeing so they would not ignore such crisis. These are after all literal life and death situations.
- Bills and Taxes
Younger generations who have recently moved out may have a tough time adjusting for the first few months. It would be difficult for them to start a new life without emotional and financial guidance from their parents.
There are lots of bills to be paid such as internet, gas, water, data plans, insurance, car payments, incomes tax, etc. Parents and older siblings who have gone through the same situations in their lives can be very understanding towards such hardships. They can provide financial help at such times.
- Weddings or Funerals
Families with lots of traditions usually hold large-scale ceremonies. The budget of such activities would include costs of catering, décor, venue as well as entertainment.
Such events would bring the whole family together that will include meeting and communication with each other for planning such events. This would be the perfect time to seek their help.
They can be witness to how their investment is being spent and also the number of financial difficulties the individual is facing.
- Car Purchase
The modern lifestyle demands a car is a basic requirement. It depends on where one lives and their lifestyles. New cars are quite costly and people even take out car loans. This puts them in a lot of debt for some time.
Such high-interest problems can be avoided by borrowing money from family members to purchase a car or any other vehicle.
Things to Avoid When Asking for Money
Borrowing money from someone is a sensitive topic. There are certain things to be kept in mind while asking for financial help. Some such things are:
- No Pressure
People do not function well under pressure. While borrowing money the last thing one would want the lender to feel is pressure. It is not beneficial to be persistent which would annoy them further. Hence the individual will lose the chance of explaining their situation.
Avoid following them everywhere or bringing up the same conversation every time since that would only make them avoid the individual. If they have stated they would think about lending money then it is advisable to not pressure them further. Even if the circumstances are dire and one needs money, pressuring them would only push them away.
- Normal Communication
People connect only through proper communication. When someone lends their money, the one who borrowed it should keep communicating as that would assure the lenders.
This does not mean one has to send regular updates on the borrowed money. All that is required is a friendly chat like before that would in turn solidify their trust in the individual.
It is common for doubts to arise when one stops communicating after borrowing money. Communication also ensures the relationship between friends remains the same even after the money borrowed has been paid back.
- Be Satisfied with the Amount
If the one lending money has agreed on a specified amount then one should be satisfied with that amount. It is best to not ask for any more than what they can lend.
One should also consider the circumstances of the one they are borrowing from. Even if the amount is small compared to what one needs, they should be thankful for it. Instead one can ask for money from different people at the same time instead of pressuring one.
- Correct Timing
The timing to ask for financial help is also very critical and one should first be able to read the atmosphere. If the one the individual plans to borrow money from is stressed about something, they should avoid bringing up the topic.
In case they are engaged in a serious conversation it is advisable to wait for the correct time without interrupting them. Finding the correct timing makes the already hard task or asking for financial help harder.
One should start with a light conversation and then move on to the financial crisis one is facing finally leading to the topic of money lending.
- Accept Failure
If someone refuses the individual to lend any money, they should accept that fact. The choice is entirely theirs and they can do whatever they wish with their own money.
Different people have different circumstances, while some can not lend any money, others simply don’t want to. There is no point in agitating those who refused to help financially.
Friends and family genuinely want to help in times of everyone’s financial crisis. This fact should not be taken advantage of. They put the trust and love behind such decisions. One should set a limit to asking for help only when it is needed. But one should also pay the money borrowed within the set time, else they may drift apart or cause damage to such precious personal relationships.
Frequently Asked Questions
- Can you borrow money from their grandmother?
One can borrow money from their grandmother but only for valid uses and emergency cases.
- Is it costly to furnish a new house?
There are a lot of costs excluding the price of the house when one is moving in.
- Is it safer to take a loan from a friend than a bank?
When money is loaned from a bank the interest rates are quite high. In the case of friends, there is little to no interest.
- Is college tuition costlier than high school?
College certainly is costlier than schools. Students even take out loans for their college fees and then spend years paying them back.