Thursday, 16 January 2014

Bouncing back after bankruptcy – A look into some vital tips

Posted at  08:20  |  in  Bankruptcy

Are you someone who has recently filed bankruptcy and is still going through the social stigma of being called a bankrupt? If answered yes, you must be going through a trauma of managing to a compromised lifestyle due to lack of funds. Well, your debt might have been discharged through bankruptcy, but that doesn’t mean that you’re free to start off with splurging with your dollars. It is very important for someone to lead a financially disciplined life so that he doesn’t incur any kind of debt in the long run for which he might find him responsible yet again. Here are some tips that you may take into account if you’re looking forward to bouncing back post bankruptcy.

Make sure you pay yourself first: Well, this may sound contradictory but yes it is true that the first step that you need to take soon after filing bankruptcy is to rebuild your savings that were totally wiped off during filing bankruptcy. When you pay yourself first, you create a financial foundation to protect yourself against any unexpected situation in life. You can face any kind of financial odds when you’re sure about having a worthy savings account to fall back on.

Automate your bills: Paying your bill late is one of the most important reasons behind accumulation of high interest debt. But when you’ve just filed bankruptcy, you should make sure you now pay your bills on time so that you don’t incur late fees and penalty fees. Automate your bill payments and set a pre-fixed date so that the amount of money is deducted from your checking account and deposited to your savings account. When you don’t see the money before saving it, you can easily follow your saving goals.

Educate your family about your decisions: This might be the last thing that can come to your mind but when you’re about to close on a bankruptcy case, you should know that this is the best moment to teach your family about the money lessons that you’ve learnt and the way in which you will thereafter take care of your finances. You would always need the support of your family members and hence they should support you about the decisions that you take. Inform them about your decisions so that they find it easier to support you in whatever you do.

Devise a realistic budget: You can then devise a realistic budget so that you can easily be able to strike a balance between your income and expenditures. If you don’t follow a budget, you might again start spending more dollars and again fall in a mess. Evaluate the budget at the end of the month so that you may have space for enough improvement. Always remind yourself about following a budget so that you don’t start spending out of control.

Hence, when you’ve already filed bankruptcy, you should follow the above mentioned financial tips to avoid yet another financial doom. Get help of a professional financial advisor if needed.

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Jimmy Simond is founder of wallstreetsfinancenews.com he share his immense knowledge of finance in this blog. You can follow him on Google+.

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