So how often do business deals within a family go wrong? In my experiences, almost always. However, one of my close family members has just given me a thought to consider. Essentially he wants me to loan him a substantial amount of money, and he pay the money back + interest, around August 2010. I am completely fine with loaning him money, because he is very professional and everything will be done in an official manner. However, this is the money I have been saving to start some serious investing.
Currently I save money within my joint account for our down payment; I have automatic withdrawals biweekly to 2 different investments, and my own personal savings which I might be loaning out now. If I do loan this money:
1. My net worth will take a steep decrease
2. I will feel broke
3. I will have to put off serious investing for a another few months
On the other hand, come August 2010 when he pays me back, I will feel an automatic increase in net worth again. Another factor, I don’t know if I can say no to him, and I know he would be there for me if I needed him.
It is a tough decision, and I am going to have to really think this over in the next few days.
August 18, 2009 at 7:10 am
Hey there. I just stumbled across your blog and for some reason this post really intrigued.
Sigh.. Yes, I know that feeling. Sometimes, some people even go the distance and declare “when it comes to money, I have NO relatives.”
Well, when you said that everything will be done officially, I guess you will have it all on paper and everything. So I guess getting it back isn’t the question. Also, at least you can be sure that by August 2010, your investment will be up and going.
Goodluck with any of your decisions!
August 18, 2009 at 6:49 pm
Thanks for your input. It’s a really tough decision, but in the end family is very important, and I have to be willing to sacrifice. I know he would be willing to do the same for me, so it’s important to keep everything in perspective.
August 24, 2009 at 7:48 pm
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