How to keep track of money you lend to friends and family

Write it down the same day

Note who, how much, the date and what it was for. A record made at the time settles any later doubt about the amount, and it's far less awkward than relying on memory a month later.

Agree on repayment up front

A light "pay me back whenever after payday" sets an expectation without being formal. For larger amounts, agreeing on a date or a few instalments helps both sides. Sending a quick message confirming the amount gives you both a record.

Count it in your finances

Money you've lent is still yours, so it belongs in your net worth as an asset until it's repaid. Money you've borrowed is a debt and should be subtracted. Keeping both in view stops a friendly loan from silently distorting your picture of your own money.

Asking for it back

• Keep it casual and specific: "Hey, just checking on the ₹3,000 from the Goa trip."
• Offer an easy way to pay, such as a UPI ID or bank transfer.
• If someone is struggling, agreeing on smaller instalments is better than silence.

Lend only what you could afford to lose

The kindest rule for everyone: lend amounts that wouldn't hurt you if repayment took a long time. It keeps the friendship safe either way.

This guide is general information, not financial advice. Your situation may differ, so check the details that apply to you.