7. Lacking Financial Responsibility
Responsible management of finances means that when there is a period of prosperity, individuals, families, and companies will save some of that money for a rainy day. The rainy day is here now, so if airlines, hotels, and other industries have been experiencing so much prosperity over the past decade, why are they not prepared?
Because they’ve been using their cash influxes to buy back company shares and increase payments to upper-level management. They haven’t been using it to repay loans or build up a reserve fund to carry them through a difficult period.