The Warning Signs of a Personal Financial Crisis

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Last week I wrote about the gravity of the increased risk of suicide after experiencing a personal financial crisis. This underscores the seriousness with which we all need to approach making financial decisions, especially those involving high-risk, speculative “investment opportunities.”

What can a person do to mitigate the potential of becoming mired in a life-shattering financial crisis? While in many ways I am unqualified to address this huge topic, I can offer some suggestions that could be helpful.

The first and most logical action is financial literacy – gaining a basic understanding of how money works. One essential concept is “Don’t spend more than you make.” Borrowing because of overspending one’s income is the headwaters of most financial catastrophes.