To find your financial footing after bankruptcy, you’ll need to change the way you think about money. Approaching your budgeting and money management differently than you did before filing for Chapter 7 or Chapter 13 can help you get your spending under control.
Changing your money mindset will take time and effort, but doing so is the way to get back on the road to financial freedom. The solution begins with getting yourself off the paycheck-to-paycheck treadmill.
Do the Math — Little Extras Can Affect Your Post-Bankruptcy Budget
Logically, you know your habit of grabbing a skinny half-caf venti latte on the way to work isn’t helping your post-bankruptcy budget. Neither is eating lunch out every day. Dropping your morning coffee run and switching to hand-packed lunches may not be easy, but doing a little math may help ease the transition.
Let’s say you’re spending $5 on coffee each weekday. That may seem like a harmless little splurge, but the costs really add up. Each week, your coffee alone is taking $25 out of your wallet. Or to look at it another way, you’re shelling out $1,300 every year. Now double (or triple) that if you’re eating lunch out, and the numbers really start to add up.
Thinking about what else you can — and will — do with that money could help you cut your daily spending and put you on the right financial track after bankruptcy.
Create a Plan to Save for Something Fun After Bankruptcy
It’s a wise idea to start saving money for emergencies after your bankruptcy, as savings can help you weather any future financial crises. But to have a better financial attitude toward money, set up a “fun fund” as well.
Setting aside money for something fun — even just a few dollars a week — will help you feel better about saving in general. Would you like to go on a vacation, or buy a new flat-screen TV? Create a fun fund specifically for that purpose, and you’ll be more motivated to save.
Think Twice Before Spending After Bankruptcy
Impulsive spending can wreak havoc on your post-bankruptcy budget. To combat spur-of-the-moment shopping urges, force yourself to wait at least 24 hours — longer, if you can — before making a purchase.
By waiting, you give yourself the chance to fully consider whether you truly need whatever it is that you want to buy. Is that to-die-for purse really a must-have? Does your wardrobe need another pair of black pants? Are new kitchen towels essential right now?
Sometimes, the answer will be yes. Often, though, once you’ve given the matter some thought, you’ll realize that the purchase may not be a necessity. This strategy can be particularly helpful in transforming your behavior toward spending following bankruptcy.
The experienced Utah bankruptcy attorneys at Lewis Adams & Associates can offer more advice on restoring your financial future. Contact our West Jordan, Utah, office today to learn more about budgeting for success after your bankruptcy.