They say friends and finances don't go well together, and considering the many ugly feuds we've heard about over the years, we're not really surprised. Here's how you can preserve your friendship when money gets in the way.

When lending cash
Lending money to a friend in need is a touching token of friendship, but it can just as quickly end it. As much as possible, don't lend out an amount that you can't afford to lose. Ruthann Driscoll, a director of advanced planning at Northwestern Mutual says, "Loaning money is never simple, but when you lend to family or friends, it also has the potential to destroy a treasured relationship, especially when the money isn't repaid." To make sure you don’t lose a friend in the process of asking for your money back, take note of these things.

Put it in writing.
It's important to keep a paper trail of what has been paid and the remaining balance. This is your guide so you don't get confused about the small details. 

Bring a third party.
Although he may be your friend, you’ll never know what might happen in the long run. Bringing a third party ensures that there is a witness who can hold both of you accountable for your words and actions. 

Give friendly reminders.
Don't go texting and calling your friend the whole day when he's due his payment. Instead, wait a day or two after the date you both agreed on before giving him a call and remember to be polite. Just because you lent someone some money doesn't give you the right to treat him badly.

When starting a business
While it seems nice and convenient to start a business with your friend, you still have a lot of things to consider. Does she have time to spare? Is she responsible? Are both of you ready to take the risks? Are you financially equipped to handle the consequences of a failed enterprise? Can you two work together?

If you have no trouble answering these simple questions with ease, you can probably give your business a try. Just keep in mind that if your business fails, there will be a different set of issues to think about, such as who should have the last say when it comes to major decisions or who should get more of what's left once you call it quits. As with lending money, everything needs to be put in writing. You don't want your business and your friendship to fail because of a slight misunderstanding.

PHOTO: Pixabay; GIFs: Giphy

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