It took me a very long time of earning my own money and realizing the methodology of earning, spending and flipping to remove emotion from my money. When you handle money with emotion it becomes a trivial thing that users and broke leeches will suck away from you through pity. Because of this I have adapted the principle of demanding a premium on loans. A premium is a little extra on top to make it into an investment versus a loss when loaning money. This premium extends to anyone that asks me for money including my own mother (ask her I’m not messing around here). If you want to borrow $500 then bring back $550 when you get paid.

The premium is an important ideal because it makes the loan worth your while as opposed to the slight a standard loan brings. You do not have to give someone a loan, it’s money that they don’t have and are asking you to part with for a time until they can pay it back. When you get the money back you will have gone for x days without that money so it is a bad investment for the earner. When you put a premium on it the x days are paid for by that interest and you will get your money back with that extra icing on your cake.

Now some people act offended when you demand a premium because they have no money-sense and assume that money is this magical dust that some have by chance and some lack. For individuals like this you are better off not loaning them the money anyway since they are more than likely to “forget” they owe you.

People Who Forget Their Debts

These people trip me out, I really, really don’t understand this mentality. You loan them $200 and tell them that you would like it back by x day and come that day they somehow “forgot” that they owe you money. Here’s the thing, if someone forgets that they owe money then they are beyond worthless and should not be loaned to again. I tend to take it a step further but as you can see I am very intolerant to this. I am intolerant because you do not have to loan money, it isn’t required of you, yet you go out of your way to reach into your account and help these people only for them to “forget”. That just does not sit well with me, actually it’s offensive and it shows the character of the person you are dealing with. Money is a great way to gauge a man’s character, the man who “forgets” his debts is a selfishly entitled individual.

So going forward I advise you earners to apply the premium to your loans, if the person has been iffy in the past with repayment then tell them you don’t have it. When a new person asks me for money I don’t go above $50 because they have to earn my trust to go any higher than that. Can you imagine loaning someone $5,000 and have them ”forget” that they were supposed to pay you back on Tuesday? That kind of crap makes you want to channel your inner Gangster and break their knees or something. There was an episode of Family Guy which illustrated this point when Brian owed Stewie $50 from a bet and kept blowing it off whenever asked. How jacked up is that? This person owes you money and you have to keep prodding and asking them for it over and over (premium not looking so bad now does it). Stewie channeled his inner Gangster and shot, burnt and beat Brian until he paid him his money. Of course Family Guy is a cartoon but it is a reality that happens everyday so ya the higher amounts have to be earned, I’m not that trusting.

So that being said, don’t be a sorry individual, pay your debts and return your favors. It will make you a good guy/girl and the person dealing with you will not hesitate to help you again.

Written by Greg Dragon on Wednesday, July 7, 2010 

Filed under Money and Business, The Code of Man
Tagged with debts, gangster, principle, prodding, reality