Sunday, August 17, 2008

Money & Relationships - To Mix or Not?

Money, money, money ...
money relationship

Should you mix the two? Money and relationships that is. Popular advice is an emphatic no!

But the two also have a way of getting together. So what is one supposed to do when relationships and money come together?

Intentional Deceit - These are the cases when someone intentionally takes advantage of the relationship, my naivety or just circumstances. They may feel that they are justified in their actions because they have less, I have more or some other convoluted logic but to me it's not fair. No one should make assumptions about what is more or less concerning others finances and definitely not make a grab for something that is not theirs. My philosophy in such situations is to strictly avoid financial transactions and if I need to part with some money - it is done with the understanding that I am giving that money away not lending it.

The Oblivious - This category of people do not have ulterior motives, they are just oblivious to the value of money - their or someones elses. They are naive and uneducated about the value of money or what it means to people. I am carefull even in these situations and follow the same rule about money lending.

Seeking Help - It may look like other's need financial help but the prudent advice is mind your own business. Unless asked for advice - I am mostly an eager listener. I do ask people about their investing strategies and methods but that is more for my learning. Don't be the guy with the next hot stock tip or the pompous sounding financial expert.

Smart Money - Any large financial transactions or business venture between friends or relatives should always be constructed using clarity, detail and formalization. You always run the risk of money impacting your relationship but the risk is manageable. If you are smart about your money and have strong relationships - mixing the two can be beneficial in some situations.

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