One of my many money mistakes I've made is letting people borrow money from me. The total "receivables" is PHP 500,000+, and up until now, the people who borrowed money from me are not making a move to pay .What a costly mistake, right?! It took half a million pesos for me to realized that enough is enough. Ouch!
As I realized my huge money mistake, I contemplated and reached a conclusion on why I let them take advantage and why I let them borrow money over and over again.
The reason? This is a hard pill to swallow, but the reason was to let them know that I have money now and that I can afford to let them borrow such amount. I grew up having nothing and now that I have something, I let them know that I have it by letting them borrow on a whim. Arrogance has its price!
After reaching to that conclusion , I completely and absolutely say NO to any money request. That said, I don't give them any impression that its raining money here. Up until now, I don't let them borrow anymore. Nada. Never again!
One thing that hurt me the most was when I heard from a grapevine that one of my relatives who borrowed money from me had bought a car in cash and renovated his house, and when I asked for my money back, he totally told me that, "I'm not the same person I once was." He was spreading rumors about me. WHAT THE HECK? You bought a car and renovated your house and you forgot that you owe me
money? Ugh! Up until now, never did he pay me back and I'm the bad person for asking for my money back!
Another incident, my cousin borrowed money from me for placement fee for her work abroad. I totally let her borrow money and she promised she'd pay me back if she receive her first salary. Did she follow on her promise? Naaaah. She already bought a house and a car and never bothered to pay me back.
It still hurt that our relationship with my family is in chaos because of money. It's all my fault for letting them borrow money and its all my fault for being too trusting.
Learn from my mistake.
I've encountered people like that. Good thing, they're not my relatives.
ReplyDeleteIt's difficult to collect receivables that I decided to just write them off. Pero kung P500,000 yun, i would write a collection letter.
A lot of people are like that. It is ok if you really trust and know them and it is an emergency.
ReplyDeleteThat said, you should point me to these people, maybe I can give them an RKO or two.
Mahirap i-let go ang 500,000p no! A very expensive lesson indeed, but if it made you part ways with your moocher friends and relatives, worth it na rin siguro.
ReplyDeleteI learned the hard way that when it comes to lending money, it's better to have a "giving" frame of mind. If you think you're giving the money instead of lending it (without telling the lendee of course!) you won't fret if the money isn't returned, and will have a windfall if it is.
Although I rarely ever give the whole amount asked for. Let's say someone wants to borrow 10k, I "give" 1k or 2k and explain that I can only afford that much.
But for what it's worth, I now know that I can trust those who repay me and be wary of those who don't and I would rather deal with those who keep their word.
I just arrived here in Philippines from Australia, I am 28 now turning 29 this year. I worked abroad for almost 3.5 years and decided to try it again here in the Philippines. I still can't find anything worth risking at the moment so I just placed all my saving on a BDO money market fund which is earning me almost nothing. I also considered studying again for a skill course at the moment because that seems to be the best investment so far. I am really shocked how everything is so expensive here in Philippines now. But nonetheless, I still keep my eyes open for opportunity and keep thinking positive. I also tried lending money before but it didn't worked out for me. May sakit talaga sila sa utang... I was able to recover almost everything though because i really pushed so hard like I am an Indian 5-6 expert. It even ruined some friendship that's why I decided to stop doing it. Anyway good luck on your Journey!
ReplyDeleteHey, thanks for dropping by and thanks so much for sharing your experience, which is soon will be the same as mine. One question, did you regret going back home? That's one of my concerns kasi, that's why I'm reading stuffs to prepare me for the journey ahead.wew!
DeleteAs for your lending money business, you should have asked for collateral, write an agreement then notarized it so when they run and don't pay you back, at least you have something which you can either sale or use. I should have done that,too and if someone "borrows" money na, I should do that too. Never again!
Don't worry about setbacks, every one big business has thousands history or failures. We won't be enjoying KFC if Col. Sanders gave up knocking on every stores so they can try the chicken he made. You can read Sylvester Stallone's life story, very inspiring!
As what my mentor said, Philippines is like 1960 USA, too many businesses to be put up and too much room to grow so keep your eyes open!
Thanks again!
I picked up a good tip from a friend about lending / giving money. You should have a maximum amount to lend / give na hindi sasama ung loob mo at masisira ang relationship niyo.
ReplyDeleteNainis ako before that happened to me. Ako pa ung super kulit about asking to return the money borrowed kasi I needed it na. Ikaw na nga ung nagpahiram, ikaw pa ang parang kontrabida.
Howell.
I learned my lesson, I won't ever let my relatives borrow money coz when you let them borrow money, your relationship is in jeopardy.
DeleteIt is easier for me not to let them borrow coz they don't ask anymore, nahihiya siguro to "borrow" money based on what they did to me.
It is so sad kasi up until now, we aren't talking :(
I've been in small lending business for 3 years already. Very nice EXTRA income. Isa lang tip ko sa mga magpapautang, never ka magpapautang sa relatives. If needed talaga, I recommend them to other lender na kilala ko. Dapat marunong talaga tayo mag say ng NO else LUGI na tayo.
ReplyDeleteGood for you. Me, I wasn't thinking about "business" when I lend money to relatives. I intend to help lang without looking for interest whatsoever pero they screwed me. So Hindi na makaka ulit
DeleteSad to hear about your lending experience. Some people can be bad like that. At least you now know better. As for me, I don't have that much money to lend to anyone and if I had, I think I'll only lend money to my immediate family. Para sure ako na babayaran ako kundi lagot sila sakin. Hehe. :)
ReplyDeleteI know, right? When it's your sibling lang, you can just "bully" them on paying you. haha! Unlike uncle and aunts, they'd say I change and I am not the same anymore porket naka abroad na! Aba, aba!
DeleteThis is really sad, especially because they are family. My aunt also would lend money to some of our relatives and up to now he still hasn't paid it back. His children who are now of working age and graduated college are living the life with a brand new car and always eating at restaurants and traveling with their parents. She asked a few years ago if they can repay the money back because she is not working too much as a result of physical disability. They still haven't paid it back and even ignore her at family gatherings. this is sad but it's life. You learned from your mistake and will never do it again. Good for you.
ReplyDeleteWe had similar encounters with our so called relatives. Now we don't consider them part of our family anymore. They should keep a distance now. Palpak sila lahat.
ReplyDeleteI learned my lesson for $300 borrowed by not-so-closed friend. It's an emergency and I happen to be there.
ReplyDeleteOne thing I learned is not to lend and like you said "set a limit." If it's a family emergency, I'll give what I can and niot expect anything in return.
Let help be a help. Nothing more; no need to brag about it. It's comforting to know that God will reward the good deed in due time. So keep calm and let go. Good things are about to happen.
For the record po, I'm not bragging about it po. That's why I remained anonymous po so I can post what I want- no holds barred. It serves as a warning lang po for other people not to let other people borrow money from them kasi nakakasira ng relationship.
DeleteThanks for dropping by.