Nobody wants to declare themselves bankrupt, but there are times when this is the only solution to life’s problems. Fortunately, if you’ve come to the point wherein you had to file for bankruptcy, don’t worry since there are lots of things you can do to rise above the ashes and rebuild your financial life. These include:
Creating and following a budget
Having a budget is important since it helps you hit three goals: to keep your spending under control, ensure that your cash on hand is enough to cover your basic needs, and eliminate the need to borrow money. Budgeting your salary is hard particularly if you’re used to buying whatever you want, but it’s an important skill that will help you for the rest of your life.
Monitoring your credit reports
Around six months after your case has ended, you need to start reviewing your credit reports. This way, you can check that your discharged debts are reported with a zero balance to credit bureaus and ensure they won’t haunt you again in the future. You’ll also know what your credit score is, which will give you a clear idea of how you can get it back on track.
Saving as much as you can
Since you can no longer rely on credit cards and bank loans, you need to have enough cash on hand to deal with car repairs, hospitalizations, and other unexpected expenses. The best way to do this is to save for an emergency fund, which you can easily do if you budget your money properly and avoid spending on unnecessary things. Don’t worry if you can’t set aside a large amount for your savings account; even saving a small amount every month can become a big help later on.
Take these steps now to slowly but surely recover from your bankruptcy!