Rebuilding after a bankruptcy: 4 steps you can take.
There is life after bankruptcy. Just consider Henry Ford and Walt Disney. They declared bankruptcy and were able to rebuild. The key to rebuilding your financial “self” lies in planning for success. Here are four steps anyone can take to get back on track following a bankruptcy:
- Control Spending- spend less than you earn. Seems simple but it is foundation of financial success and is too often ignored.
- Create a Budget- itemize your expenses and don’t leave anything out. If you spend money on it each month make sure to include it in your budget. To be effective a budget must be all-inclusive and it needs to monitored each month. If you veer off the path- get back on it and learn from your mistake.
- Start a Savings Plan- add a line-item to your new budget that reads “Savings” and make sure to set that money aside first. It does not matter how small the number is at first, but what does matter is that you are putting that money aside each and every month.
- Rebuild Your Credit- if you are doing steps 1-3 above, then you are well on your way to rebuilding your credit. Be sure to pay your bills on time EVERY month and while it will likely be some time before you will be able to secure new credit, your steady and consistent approach will pay dividends if you do seek credit in the future.
So, keep it steady and remember that you can control your financial future.