Once Bankruptcy Case in Florida was discharged, you most likely asked yourself, where do I go from here? Will I ever be able to purchase a new home? A new car? Eventually you will be able to buy a new home, or new car. In some cases in may take more time than in others. Relax it will get easier for you. However, do not fall into the trap that led you to our office in the first place. Remember, the credit card companies will be happy to provide you with a credit card and hope you get into to trouble again. You can only file Chapter 7 Bankruptcy relief once every 8 years. So be careful how you spend your money.
As we talked about in the office, learn to live off 70% of your income and begin saving the other 30% of your income for an emergency. Now you will likely be free of most of your debtsand you'll have the opportunity to get a fresh financial start. Your goal must be to overcome and the challenge of rebuilding your credit and establishing new financial goals. When you emergefrom bankruptcy, you will probably be left with few or no credit cards. Many of your sources of credit will be gone, and you will have a challenge to maintain your commitment to financial well-being. Set up an emergency fund. An emergency fund is a reserve of ready cash that you will use to cover emergency expenses while you are back on your feet after filing bankruptcy. Typically, you should place three months’ worth of your average monthly expenses in your emergency fund.
You may well wonder how you're going to find the funds to start an emergency fund when you're just getting out of bankruptcy. Many people are forced into bankruptcy court because they areunable to control their spending. For example, instead of saving small amounts of money every week, they buy expensive gourmet coffee, go out for lunch every day, or put money in the weekly lottery. Although these types of expenses may be small individually, when totaled up over a year, they can run into the thousands of dollars. For example, do you play the lottery? Do you religiously plunk down 10 or 20 dollars every week on your favorite numbers with thethought that you'll never really miss those 20 bucks if you lose, and that if you win, all of your troubles will be over? Leaving aside the almost overwhelming odds against you that you will ever win a significant amount of money in a lottery (according to most experts, you're more likely to be struck by lightning than to win the lottery), you should think about how your money would grow, if instead of spending it on the lottery, you deposited it in an investment account.
Meanwhile, during the first three months of your non-lottery existence, you will have saved $260 for your emergency fund. This sacrifice may only be temporary, but the peace of mind you will gain will have long-lasting effects on your financial outlook.
You will need the disciplined enough to not spend the money until you have a REAL emergency. If no emergency arises, you'll have a nice source of savings for that rainy day down the road.Once you build up about three months of expenses for your emergency fund, congratulate yourself. Not only have you established an important cash reserve for emergencies, you will also have proved to yourself that you can control your spending and save money – two very important skills for your life after filing bankruptcy.
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