Whether a formal budget is put together or not, everyone has a budget they live by in life. You can only spend as much money as you can access on an annual basis, whether that is directly through your paycheck or through loans and credit cards. Ideally, you are spending less than you make each year and not taking on too much debt. However, debt is inevitable and so is the need for a rainy-day fund, or emergency savings. One of the toughest financial decisions most people face is what to do with the money they have. Should you be paying down debts or saving for emergencies?
The 2008 financial crash in the United States wiped out trillions in wealth and value, both among homeowners and investors. The problem with market collapses and other issues, as The Balance notes, is that crises happen quickly, are unpredictable, and imminent signs of failure are usually difficult to see. It is less a question of will another crash happen, and more a situation of when the next crash will happen.