How to Safely Lend Money to Family and Friends

Getty Images We hear all the time that you should not loan money to friends, but yet friends and family are the most important parts of life. So what do you do, when a family member or close friend has nowhere else to turn for their financial needs? If you feel like you can't (or don't want to) say no, there are some steps you can take to make sure the loan doesn't turn into lingering hard feelings. At the very basic level, it's important to get everyone (spouses, significant others, etc.) on board before you make a deal, consider the impact of this decision and try to look beyond the loan. 1. Lend Only What You Can Afford to Lose