Save Money and Learn How to Avoid Getting into Debt!
As a bankruptcy lawyer, I know from previous experience that anyone can get into debt, whether they want to or not, and looking for ways to save money can be a bit challenging. My job doesn’t feel complete without helping every single client that walks through my door how to avoid entering into further financial hardship after filing bankruptcy. Following these three simple steps might seem obvious, but it’s the best way to avoid any kind of debt and save money.
Step 1 – Stop spending; put your money down.
The first step is obvious, but most forget that this is the root to all of their financial issues. Learning to live within your means is critical to establishing a financially secure future. Bankruptcy is a great way to erase financial mistakes and begin again, but it’s typically a remedy that is only available every eight years. You don’t want to make a habit of it. Taking a hard look at finances and learning how to create a lovable budget is crucial to avoid making the same mistakes. Beyond paying your regular bills, figure out where the rest of your money is going and reduce spending. It may be uncomfortable at first, but it will be gratifying in the end.
Step 2 – Pick Your Method
The second step to begin saving money is starting a savings account, or better yet, ERISA qualified IRA and 401(k) plans.
Step 3 – Stick To The Rhythm
The third and final step can be a little challenging, but the results are worth it. After receiving your bankruptcy discharge, many people find themselves enjoying a financial freedom they haven’t felt in years. Money that used to go towards paying down debt is suddenly theirs to spend! Credit card companies are very well aware of this, and will not be shy about encouraging people to get and use new cards. Don’t fall into this trap! Financial freedom means freedom from debt. If the road to hell is paved with good intentions, the road to bankruptcy is paved with credit cards. Stay away.
“Do I want to be buried in debt or would you rather have financial freedom?”
Don’t be afraid to tell your friends or family that you can’t do something because you can’t afford it. Staying debt free is about you becoming and remaining financially sound.
Let us know what you think
Overall, did you enjoy this post? What are some great strategies that you use to save money and avoid debt?
Let us know in the comments I would love to hear your input.