Life After Bankruptcy
Stop
If you don’t want to file again, here are some things you need to stop doing.
- Taking out credit cards – Cut up all new credit card offers you get. These companies are hoping you will make the same financial mistake twice.
- Confusing wants with needs – almost no one files bankruptcy because they were spending too much on groceries or utilities. People normally go broke because they have confused what they want (such as a new car) with what they need (such as food and shelter).
- Eating out – Yes. Eating is a “need.” But eating out is a “want.” Slap some peanut butter on bread and take it to work. And yes, buying $5.00 coffee counts as eating out.
Start
Stopping bad habits isn’t enough for financial success. You’re going to have to start making good habits.
- Cut up your credit cards – Don’t just cut up the cards you get in the mail, dice up all your current credit cards.
- Do a budget – Take an honest look at your income and your expenses. Plan every penny you will spend. You might be surprised to find out where your money is going.
- Use cash – Paying with cash is painful. You’ll soon find that you spend less when you pay with cash.
- Save – “Rainy days” are going to happen. Make saving 10% of your gross income a goal. Try to save 4 to 6 months worth of expenses. Saving will also break the habit of living off 100% of your paycheck, which will provide more cushion between you and life.
These points are just the tip of the iceberg when it comes to wise money management. I lay out a complete guide for financial success in my upcoming book Life After Bankruptcy. Give our office a Modesto bankruptcy office call if you are interested in purchasing a copy.