Financial ruin is a severe financial crisis that can lead to bankruptcy, debt, and even homelessness. Avoiding financial ruin is crucial for individuals and families to maintain financial stability and well-being.
There are several ways to avoid financial ruin, including creating a budget, managing debt responsibly, investing wisely, and planning for the future. A budget helps individuals track their income and expenses, allowing them to make informed decisions about how to allocate their resources. Managing debt responsibly involves paying off high-interest debts first and avoiding taking on more debt than one can afford. Investing wisely involves diversifying investments and understanding the risks involved. Planning for the future includes saving for retirement, emergencies, and other unexpected events.