Money habits · · 1 min read
Lending money to friends without losing track (or the friendship)
Small loans between friends are easy to forget and awkward to bring up. A simple record of who owes what, and every part-payment, keeps it clear on both sides.
You cover a concert ticket, a dinner, a deposit for a shared trip. A few weeks later neither of you remembers the exact amount, and asking feels petty. Most money friction between friends isn't about the money. It's about uncertainty.
Write it down the same day
Record the person, the amount, the currency and a short note ("Lisbon flat deposit") when it happens. A note with a date settles most "wait, what was that for?" conversations before they start.
Track both directions
It's easy to remember what you're owed and forget what you owe. Keep both in the same place. Your net position with someone, what they owe you minus what you owe them, is often smaller than either number alone.
Record part-payments, not just "paid"
Real repayments rarely arrive in one go. $100 now, $200 next month. If you only mark loans as open or closed, the in-between gets fuzzy. Log each payment with its date and you'll always know what's actually left.
A good rule: if you'd be annoyed to forget it, it's worth one line in a tracker.
Count loans in your net worth
Money you've lent is still yours until it comes back, and money you've borrowed isn't. Leaving loans out makes your net worth look better or worse than it is. Count what's outstanding, not the original amount.
How Finance helps
- Record loans you gave and received, in any currency.
- Add part-payments with dates and notes; the outstanding balance updates.
- A loan settles itself once it's fully repaid.
- See your net position per person, and outstanding loans in your total.