subject: Advice On How To Avoid Bankruptcy [print this page] It is a sign of the times that we are living in a time where bankruptcy is at an all-time high in the United States with people being forces out of their homes due to a lack of available work in the world they live in.
A little smart budgeting can make a little difference, though. Budgeting lies at the foundation of every financial plan.
Don't buy on credit: This may seem basic, but it's a message everyone should take to heart. When you begin to stray from your budget it's usually because of spending too much money somewhere. But if you have a budget that tells you exactly how much you're supposed to spend. Be careful.
Whether you use the envelope tactic to avoid overspending, or you just simply set up separate bank accounts, you need to keep your money in order. It might not be as fast, but it helps you visualize just how much money you're actually spending.
Resist the urge to shop: If you still want the thing, it will be there when you come back to the store. When you had to rely on keeping cash on hand, the act of spending money meant you had to do a little planning and some simple math.
Plan your spending: You need to make a budget and then adhere to it as closely as possible. Build on the positivity you need to maintain motivation. What can happen is you will get into the habit of following your budget and it will be a whole lot easier that when you started. If you lose that motivation, you become easy.
Don't be afraid to ask for help. The feeling of accomplishing your financial goals is intoxicating, but continue to push yourself to reach these goals. And ask your family to give a little bit of aid to that.
Finally, if it comes down to it and you do wind up filing for bankruptcy, make sure you have legal representation you can trust.
