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How To Avoid Financial Ruin
Seven Tips To Avoid Financial Ruin
The good life is in your own hands
I may be only a dentist well versed with the matters of teeth and gums but I am a mature senior who has observed much. How other people have gone through the stormy billows of life and either become damaged financially or survive.
Life is uncertain. You may be blessed with a good card during which you strike fortune either through your own effort or through lady luck. What you do with it thereafter could give you a smooth ride through which you could explore all the interesting possibilities that life can offer.
On the other hand, a financial ruin will render so much hardship that living becomes a chore. Yet, not all is lost. One can recover from one’s misfortune and still emerge victoriously.
Financial ruin is often self-created so the mindful ones would avoid them from the very beginning. Learn from others who have gone through the vicissitudes of life.
1 Always have a roof over your head — -It’s not uncommon to find out that there are people who would mortgage their homes that are already paid up in full and reinvest into new businesses to achieve more returns.
However, things are not predictable. When the winds of fortune turned against them, I have witnessed people who lost their homes and their nest eggs.
One real-life example involved a relative who sold off his home to invest everything into his new business. Things changed very fast in the last few years, superseded by changing customer interests, different marketing strategies, escalating costs, and unfavorable changing business regulations.
The result was a loss of shelter and he had to move from place to place to house himself. Eventually, the business tanked and everything earned and built over more than half his life was gone. Fortunately, he has the fortitude and works even harder but expectations of a full recovery are remote.
The moral of the story is; Never sell off your home totally to invest in a business. A business is no guarantee but a home is a solid foundation that shields you from uncertainty. In my opinion, risks should only be taken with excess money.
