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5 Bankruptcy Budgeting Tips from A Concord Bankruptcy Lawyer

Ferguson Hayes Hawkins, PLLC Jan. 25, 2017

Filing for bankruptcy was probably a big step for you and your family. Wiping out debts has given you the fresh financial start you need. But in order to take advantage of that opportunity you’ll need to get your family “budget ready” after bankruptcy. Here are a few tips:

  1. Talk it out. Don’t make any unilateral decisions about the family budget. Have a family meeting where you talk about what needs to be in the budget and the areas where you all need to tighten your belts. This will help relieve a lot of anxiety that may surround creating a family budget after bankruptcy.

  2. Include little luxuries. Many people resist creating a budget after bankruptcy because it feels like they’re losing something—all the things they enjoy. But that isn’t necessarily true. Your budget can include little luxuries while also taking action to reach your financial goals. Allow each family member to have their “little luxuries” so that no one feels that they are losing everything to a budget.

  3. Be exact. Make a budget with exact dollar amounts for your expenses. For example, don’t just say you’ll spend a few hundred dollars on groceries a month, say you will spend exactly $356 per month on groceries. Using exact figures and sticking to them will help your family be budget ready after bankruptcy.

  4. Keep it visible. Once you create a budget, keep it somewhere where everyone can see it and be reminded of it. It’s true that “out of sight” really is “out of mind.”

  5. Be flexible. When you first create your family budget it’s inevitable that there will be things you didn’t’ account for. Be open to changing the budget as the months go on so that your budget is always adjusting to your family’s needs.

As you prepare for life after bankruptcy, getting your entire family on the same page financially can improve your chances of avoiding bankruptcy in the future. For more information about personal bankruptcy and developing a game plan beforehand, please contact our bankruptcy law office in Concord, NC today!