How to Fill Out Your Promissory Note

Before You Start

You'll need:

• The full name and contact info of the person lending you the money
• Your own contact info handy
• A calculator (or use our Payback Calculator on the Getting to $2,500 page — it does the math for you)

Pick the Right Version

• Live in Georgia? Use the Georgia version.
• Live in Tennessee? Use the Tennessee version.
• Live somewhere else? Reach out — Matt can put together a version for your state.

The version you pick is based on where the borrower lives, not the lender.

Filling It Out — Section by Section

The People

Fill in both your info (Borrower) and your loved one's info (Lender). Use full legal names — the same name that's on a driver's license. Phone and email are how you'll communicate about the loan, so make sure they're current.

The Loan

This is the heart of it. Five numbers:

1. Amount being borrowed — How much your loved one is giving you. (Most people on this path borrow somewhere between $500 and $2,500.)
2. Interest rate — Recommended: 9% per year. This is fair. It's higher than your loved one would earn at the bank, lower than a credit card. Everyone wins.
3. Total interest paid — The calculator figures this out. For a $2,500 loan at 9% over 3 months, total interest is about $56.
4. Total amount repaid — Principal + interest.
5. Payment day each month — Pick the date you'll pay every month. Most people pick the 1st or the 15th. Pick what's easy to remember.

Payment Schedule

Three rows, three payments. The calculator works this out so each payment is roughly equal. Write the actual calendar dates (e.g., "May 1, 2026" not just "Month 1").

What the Money Is For

This stays the same in every version. It just makes clear that you're investing the money through Foundation Financial, and you won't pull it out before the loan is paid back. This protects your loved one.

If a Payment Is Late

This stays the same in every version. The terms are gentle — $25 if you're 5+ days late, a real conversation if you're 30+ days late.

Signatures

Both of you sign and date. Pen on paper is best. Print two copies — one for each of you to keep.

A Few Tips

Have the conversation BEFORE you print. Walk through the numbers verbally first. Make sure your loved one is comfortable. The note isn't the conversation — it's the conclusion of it.

Don't be embarrassed about the formality. A written note is a sign of respect, not distrust. It protects the relationship more than it strains it. Most family loans go bad because nothing was written down.

Pay the first payment EARLY if you can. Even a few days early. It builds trust and removes anxiety. Both of you will feel better.

Communicate. If anything changes — you got a bonus and want to pay it off early, or you hit a rough month and need to talk — pick up the phone. Don't go quiet. The note assumes you'll talk.

File it somewhere. Keep your copy in a folder you'll remember. Email a scanned copy to yourself so it's searchable.

Common Questions

Q: Does it need to be notarized?

For a loan this size between people who know each other, no. A notary stamp doesn't make it more legally binding — signatures already do. Skip it.

Q: What if my loved one wants to charge a different interest rate (or none)?

That's between you two. 9% is what we recommend because it's fair to both sides. Some lenders will say "no interest, just pay me back the principal" — that's their right. If they want zero interest, just write 0% in the rate field. The IRS has rules about loans over $10,000 with zero interest, but for amounts under that, you're fine.

Q: What if I miss a payment?

Call your lender first. The note has late terms, but real life happens. Most loved ones will work with you if you communicate. The worst thing you can do is go silent.

Q: Do I have to pay it back from the investment account?

No — pay it back however you want (paycheck, savings, side income). The note just requires that you don't pull the invested money out early. The investment is your collateral for getting the loan in the first place.