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RE: Monetary Boundaries: protecting your finances and relationships #Loh282
Woww it's so lovely meeting another pharmacist here. How's the practice over there?
Ok, back to the topic of discussion, I love how you stated each and everything plain and simple, I can't be of help to someone while my pocket is going downhill.
I think I will learn from you on how to draft contracts when it comes to lending money to family members, it's such a mess because I can't ask back for it.
0.00000000 BEE
Well, I'm trying to retire from being a pharmacist because after 31 years on the job my fingers react badly to the labels I need to put on every prescription. After a day on the job my fingers split and bleed so I'm only working very limited hours now. How is the practice over there? Very different than when I started but if you are curious ask questions and I'd be happy to write a post about it for you.
As for drafting a contract for lending money to family? It is not always a fully "legal" contract in a formal sense. But I write it up in plain English. As an example: I lent my sister $40,000 CAD (about 40 Million Naira) so she could purchase a home. That was a considerable amount of money for me and certainly not an amount I was comfortable just giving away.
I sat down with my sister, my mom and my niece and we wrote everything out so it wasn't ambiguous.
I (name) am loaning $40,000 dollars to my sister (name)
This is a loan not a gift and payment is expected monthly.
Interest will be 0.41% monthly (roughly 5% annually) and will be charged each month on the last day of the month on the outstanding balance.
Monthly payments can be any amount greater than the interest payment. In the first month that amount will be $166.67
Receipts will be given for every payment and a statement will be given every month on the final day of the month.
Signed me (name)
Signed sister (name)
Signed mother (name)
Signed niece (name)
... It is certainly not a document written by lawyers. However, it is clear on all points. It is open to the whole family and agreed upon by the whole family. No-one can say later that "oh, I thought you were giving it to me" ... or "why are you charging me so much interest"... or any other nonsense.
Notice that I didn't put any penalties or force any repayment. If my sister truly could not pay then yes I would be out the money and it would hurt. However, if she didn't pay it would be to her dishonor in front of both her mother and her daughter PLUS it would give me good reason not to lend her money again.
I'm proud to say that my sister did pay, that lending her the money helped her family immensely and that things worked out well.
Maybe I'm just a mean brother but I strongly believe that clear expectations up front make things clear in the future.
Then again, I'm Canadian and we do things just a little bit differently :D
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