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I already laid out rules at the beginning... few days later, she tells me, "I broke one of your rules today, some guy walked up to me n gave me a hug". (That has to be a good sign) However, when one of my buddies came along, she was being extra friendly with him, n I froze her out, so I think she got the hint. We'll see the next time I see her. If she doesn't understand, I'll just be direct about it.
There has to be consequences for her breaking your "rules". Her giving hugs and be friendly are just SHIT TESTs that you are failing. How to pass them? Well it'll be hard to salvage, but the next time she does anything, just say "I give 105% trust in my relationships, and when you have it, you have it, but if you lose it, it's gone forever. Breaking "rules" in a relationship breaks that trust."
And honestly, if you gave her rules and she gave you none, then she isn't looking for anything big in this relationship.
After you say that to her, and she does shit anyways, just break up with her, you wont be happy otherwise.