How can I weld in my garage without burning my house down?

I am planning to dedicate a little corner of my garage for metalworking. The plan is to build a welding table to which I can attach various metalworking tools. But, the roadblock is that my garage is made up of wood. It is exposed to rafters and wall studs too. My car is parked about 6 feet away. I am afraid that if I use the stick welder in close contact with these things, my house might get burned down. Also, there is a chance of having slag all over the car.
Any thoughts on making my garage safer? Could I hang sheetrock or something on the nearest walls? Hang shower curtains? Anyways, I am planning to have fire alarm security systems installed at the house. What do you guys think about it?

You could get some welding screens like the one shown below to make a booth. That would contain the sparks and protect anyone who comes around while you are working. I have seen these screens used in factories and tech schools.

Move the car farther away while working. Remove the lawn mower and all flammable supplies with it. Be sure your wiring is up to code for the current the welder will draw. Be absolutely sure everything is properly grounded. Several fire extinguishers.

Do a Google search on “home welding area.” There are a number of articles about this on the web.