Assess Your Current Financial Situation
When assessing your financial situation it’s important to find out exactly where you stand TODAY. Are you currently unemployed? Do you have enough money for you debts and everyday expenses? Are you facing foreclosure? Have you recently filed bankruptcy? Are you currently making payments on a Chapter 13 bankruptcy plan? What other financial circumstances are you facing?
Get a Plan
Find out how you are going to spend your money, pay down debt, reduce expenses, increase income or discharge debt in bankruptcy. Once you take an honest look at your current financial situation it will be easier to make a plan; however you may want to also keep track of your actual spending for about 30 days. Once you track your spending you can get a clearer view of how you may be wasting money. Once areas of waste are identified you can make a plan to cut back on spending and stick to that plan. Don’t forget to earmark a certain amount of money for savings.
No Matter What, Everyone Needs to Save
A lack of savings is one of the leading causes of financial troubles after a job loss. It is recommended that workers have at least 3 months of expenses put aside. Also, putting money into retirement is a great way to secure your older years from financial hardship. Did you know that retirement savings are considered exempt in bankruptcy?
Consider Bankruptcy
If after assessing your financial situation you discover that you don’t have enough money to cover your expenses, make debt payments and save you may want to consider filing bankruptcy. Bankruptcy can discharge unsecured debt and free up money for more important payments such as your health insurance, a child’s education, mortgage or retirement savings.