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There is a somewhat broader classic LPT that may reduce one’s exposure here: Don’t lend money to friends. Give them gifts, or don’t.

LPT Do not loan money you wish to see again.

...and that you can't afford not to get back.

LPT: Friendships and loans do not survive. If you have it to give, give it as a gift and do not ask for repayment. Otherwise, resentment will build.

My rule is...don't loan money you can't afford to not get back. If I have money and someone needs it, I will give it with no expectation that I will get paid back. If I do, then im pleasantly surprised, if I dont, then I consider it a gift so I dont ruin relationships with family or friends