Tuesday, May 1, 2012

How To Avoid Bankruptcy

I am writing a post in conjunction with California bankruptcy.

One thing I have always been good at is keeping track of my finances and a strict budget. It is something I am proud of being able to do. I have seen what not keeping a tight hold on your budget can do so I am determined to not go that route. But there comes a time in everyone's life where you may just have to go the route you never planned on. You may get into debt, not have the finances, lose a job, etc. Below are a couple tips I have for avoiding bankruptcy. Again, this is not something I have ever been through, but these might help someone:)

1.Keep a Budget.
This is something I do daily. Whether it is grocery shopping, looking for gifts, etc. I make sure I stick by a budget that shows how much I can spend and how much extra I have. No matter where you are shopping or what comes up, this will really help in the long run. And stick by it! I know I tend to do good on the big things but then a frappe at McDonalds calls me and I want to purchase one. Sure it is only $3. But it all adds up eventually.

2.Write Down Everything.
This somewhat ties in with the first tip but not neccesarily. With a bank account it really isn't overly hard but when you pay for things with cash and such, it might be a little bit harder. Write down everything you spend for a week. Don't change anything like that early morning coffee and donut or bagel:) Then look back over it and see how much you are spending in reality. I know it is hard. But look at the things you can nix or maybe only do twice a week instead of every morning.

3.Save Up.
I personally like to have a savings account where I save up a little bit every week. Even if it is only $5 a week, it adds up for those emergencies. And believe me, I have been able to purchase things I never thought I would be able to by saving money. Just do what you can and it will help in the long run.

In this manner I have managed to avoid bankruptcy and everything that goes with it. If you have any tips for me, please leave them below.

I am participating in a blogger campaign by Bucks2Blog and was
compensated. However, the views and opinions are my own.


Maryann D. said...

Bankruptcy is a scary thing to think about, yet it can happen to anyone who is not careful. I do try to follow all of your good advice and I do believe it is especially important to have a budget and savings account.
twinkle at optonline dot net

Cozy in Texas said...

Good post. Like you, I have always kept to a budget and never lived beyond my means. One thing I realized when I lost my job a few years ago was how many contracts I had for cable, mobile phone etc. So now have a pay as you go phone and no longer use cable and kept my car after it was paid off (8 years now).

Allan Morais said...

Cutting expenditures is a good option for me. You should know the limit of your budget, even though it is hard to control. Bankruptcy can lead to bigger problems. It is best to prevent it before you find yourself spending too much and sinking in debt.

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