Budgeting After Bankruptcy

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After bankruptcy and out from underneath piles of debt, creating a budget that you can actually live comfortably with is feasible again. It’s so important to stick to a budget and we like to think of a budget as a tool to work your money to get what you want. A budget puts us in control of our income and spending and without one, it’s easy to spend impulsively and regret unnecessary purchases.

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FOR SUCCESSFUL BUDGETING AFTER BANKRUPTCY, TAKE A FEW STEPS TO STICK WITH IT.

Positive attitude toward managing money– Getting excited about organizing and taking personal control of your money is so much easier after your debts have been eliminated through bankruptcy. Try calling your personal budget your “Wealth Masterplan” or “Prosperity Plan.” Forget about your recent bankruptcy and focus on becoming the master of your money!

Define your Purpose– before you do anything else do this. You should define a specific goal you’d like to achieve with your budget in a specified time frame. Write your purpose down and put it in a place you see often, but not too ofter to avoid it becoming mundane. For example, write your purpose on a couple notecards and stick them in your medicine cabinet or freezer to keep you motivated when you see them around. Having a clear goal will keep you focused when unexpected expenses come up and your financial discipline is tested.

Clear, simple goals– Complicating your budget with too many budgeted categories will make it hard to follow and might lead to quitting your financial plan. Your budget should fit in with where you are at this stage in your life. Don’t compare your budget with your friends or anybody online, a budget is a personal journal. Just focus on your finances and only list your take-home income and your personal expenses and be honest with yourself.

Be Flexible– Life and budgeting are meant to be flexible. Your budget will change from one month to the next and will require monthly review and adjustment. If you increase your budget in one area, decrease in another– keep refining until you’re comfortable. Then, when changes in your life happen, review you budget and adjust again until you’re comfortable.

If you’d like to review your budget with our attorney, Dean Paolucci, he’s happy to help you even after your bankruptcy in Akron.