re: Cousin just asked me for money: he’s a high income earner and parents are wealthy

I’ve given some folks money out right in some cases.

In some cases folks have wanted loans. In every single of those cases I’ve always asked the same question “tell me your plan”. If there plan is “I just need your money to carry me a month down the road until I’m in the same position again”, I tell them I’m sorry. If they do have a plan I always say “it’s better if we both have something to lose and ask them to put up collateral. On almost every occasion, I’ve been told no. Those folks had no intention of ever paying me back.

If you ask the cousin what his plan is and he doesn’t lay out a solid one, tell him no. If he does have a solid plan, entertain it but for 50k, I’m getting some collateral.