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Ask Dave

The Money Or The Friend

Dave has an alternative plan for Randy, who is trying to figure out whether or not he should give a personal loan to a friend.

QUESTION: Randy’s friend needs a personal loan, and has offered up the title on his motorcycle as collateral. Randy doesn’t want to lose the money or the friend and asks Dave’s opinion. Dave has a good alternative here.

ANSWER: If you want to GIVE him some money, I would give him $500 if he brings you $500 that he’s worked and saved for, as well as a book report on The Total Money Makeover. You don’t want to just give someone money who has money problems because that doesn’t solve the problem in their life. They have to change their behavior. The way they do that is to put new stuff into their brain. If you assist him like that, you’re a friend. If you just give him money, you’re going to lose a friend.