subject: What Are the 5 Big Rules to Follow When Making a Budget after Bankruptcy? [print this page] What Are the 5 Big Rules to Follow When Making a Budget after Bankruptcy?
If making a budget seems hard, try sticking to it! It is easy to just put off saving money until your next paycheck or buy that new TV you've been wanting, even if you can't afford it. Unfortunately, if you start breaking the money management rules, you can find yourself right back in debt.What are the five biggest rules to follow when attempting to manage your money? Here are 5 of the most important money management rules that could help you stay on track and out of debt.1. Think about the future. When are you thinking of spending big money on something, ask yourself what you will think of that purchase in a week. How about a month? A year? 10 years? Impulsive purchase decisions often leave us with buyer's remorseand a whole new group of bills to accompany it.2. Don't spend too much of your income on your home and its expenses. Buying a house that you can't really afford is setting yourself up for failure. Your mortgage, taxes, insurance, and other home expenses should only add up to 29% or less of your gross monthly income.3. Don't make your car payment a burden. Your car payment should be 15% or less of your net monthly income.4. Keep an emergency fund. You should have at least 3 months worth of living expenses in a savings account. To be really safe, you could have 6 months of living expenses saved. With this rocky economic climate, it is better to be safe than sorry.5. Leave room for leisure activities. It is important to have a little extra money in your budget for entertainment or leisure. Going to see a movie, taking a trip to the amusement park, or doing a little shopping can be a great way to keep your family healthy and happy. And if you have to choose between buying a material possession and experiencing something, choose experience. Research has shown that it makes us happier.You don't have to follow all these tips perfectly, but they are important to keep in mind. It is hard to judge where you are at with your own budget if you aren't sure where you are supposed to be. Your life after bankruptcy can really only be a success if you avoid getting right back into debt. Your St. Louis bankruptcy attorney will be happy to help you get protection from foreclosure, credit card debt help and relief from creditors, but he or she won't want to see you right back where you were before.
