Only lend out what you can afford to lose.
In the past, if someone whom I am not certain about came to me asking for Financial assistance, I would only give them the amount am comfortable losing in case they don't repay. For the case of family members or very close friends, I give them without expecting it back.
If I feel like I can't afford to lend out the money I have, i just simply tell them that I don't have anything I can lend out at that moment. If they offer any form of tangible collateral, then well and good.
Lets understand that lending can be of two different reasons which is either you are lending to help someone out to solve their issues and expects a repay without an interest of profits or you are lending and expecting returns with an interest of profits.
So in this case of lending without interest of profits returns, we can lend only what is obtainable to loose because it could be assumed that there is a little familiarities between you all, do conciousness of fighting with some familiar to you at the cause of inability to payback should be observed not to bridge your connections so, it is early better you lend what is affordable to loose.
But on the side of expecting an interest profit returns, it could be assumed that it is a source of income for you do, basically you do not only lend what is affordable to loose but also amount you find treasuring because it is assumed you are bearing the risk of chasing profits but to be on the secured side of it not to get your valuable lost if impossible to repay back, then you can always demand for a collateral to defend your treasure if not able to get back your returns.
And then borrowing to the family, you can always help them out with as much as your ability can bear without a significant of borrowing because it should be assumed that it is your responsibility to help your family members at things they lacks which you are in position to help.
But while helping family people, do not let to be override and be watchful before your kind giving hearts makes your life miserable of helping ungrateful people and where it could affect your finances from stagnations.