Although it may feel like you will never be in control of your finances again after filing bankruptcy, you are usually in a better position to pay your bills, and should even be able to save money. For many people, saving money does not come easily, but it’s one of the most important factors when it comes to creating a brighter financial future. Learning how to save money can keep you from filing bankruptcy again in the future.
Learn the Difference between Wants and Needs
Many people confuse wants and needs, which could be one factor that led to your bankruptcy. Learning how to cut back on your wants will help you start and emergency savings account, and work toward future needs such as buying a house or vehicle financing after bankruptcy. Things that you can cut back on include:
- 1. Cell phone. A prepaid phone is usually a lot cheaper than a traditional cell phone plan. You also don’t need to have the latest and greatest cell phone.
- 2. Landline phone. If you have a cell phone, you can probably eliminate this monthly bill to save a lot of money.
- 3. Cable TV. Switch to a smaller package, or eliminate cable TV altogether. If you have high speed internet, you can get online movies for around $8 a month.
- 4. Satellite radio. Although you’ll have to listen to commercials, there are plenty of free radio stations available in your car and online.
- 5. Gym memberships. Gym memberships can be expensive, especially if you don’t use them. There are plenty of cheap and free ways to exercise, such as walking.
- 6. New stuff. Taking care of the stuff that you already own can keep you from having to buy new stuff. Buying used items and shopping in second-hand stores can also save you a lot of money. If you must buy new, be on the lookout for sales.
- 7. Brand names. Generic or store brand products are usually just as good as brand names. Sometimes they’re even manufactured in the same factories, and just sold under different names.
- 8. Energy drinks and designer coffee. Save money by brewing your own coffee at home.
- 9. Eating out. If you don’t know how to cook, learn. If you do know how to cook, do it more often. Cooking is much cheaper than eating out.
Rebuilding Your Credit after Bankruptcy
In addition to saving money, it’s important to rebuild your credit after bankruptcy. If you’re ready to take that step BankruptcyAutoFinancing.com is here to help. Our network of lenders will get you into an affordable used car, and help you re-establish your credit at the same time.
Remember we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.