If you’re filing for bankruptcy, there’s no need to feel like a failure in money management. People are led to filing for bankruptcy for a variety of reasons. Oftentimes, circumstances have very little to do with proper money management.
In order to make the most of your situation, and to get the best results possible, it’s important to start implementing these three money management skills today.
3 Invaluable Money Management Skills
- The most important money management skill is budgeting. When you approach the bankruptcy process, it’s important to not become demoralized about your financial situation, and embark on wild spending sprees. First and foremost, any debts you incur 90 days prior to filing will not be discharged. Secondly, this is your chance for a fresh beginning. Get a jump-start by creating a budget and committing to it!
- Start a savings plan. If you are filing for bankruptcy, then you’re clearly strapped for cash. However, soon enough you’ll be enjoying the debt relief that comes along with bankruptcy. Smart money management always involves forward thinking. Go ahead and come up with a plan for how you will start saving for the future! If it’s at all possible to start saving now, then go ahead and begin!
- Think about the worst-case scenario. Again, good money management is forward thinking. What will you do in the event of unemployment? Sickness? What if your landlord is foreclosed on? It’s important to keep all of these things in mind as you start this next chapter of your life. If you can start allocating cash for various emergencies, then begin doing so now! Otherwise, come up with goals for doing so after you file for bankruptcy!
Strong money management practices can help you avoid filing for bankruptcy a second time. Plus, you’ll have a happier, reduced-stress life when you practice good money management!