Step one — Put Your House In
Order. Do you know why you filed bankruptcy? Was it
because of something beyond your control, like an illness, a
death in the family, a messy divorce, etc.? Was it because you
have a hard time keeping a budget? Was it a little bit of both?
Whatever the reason is, you HAVE to remember not to repeat your
mistake. While establishing credit after your first
bankruptcy is easy, trying to re-establish after your second
bankruptcy isn’t. So be warned — you only get one “do-over” when
it comes to credit.
Start by setting aside no less than 10% of
your paycheck in a savings account. If you can afford it (and,
since you just came out of bankruptcy you probably can) set
aside 20%. Next, make a budget for the rest of your cash. Have a
goal for every expense and then write down every transaction and
keep every receipt. At the end of the month, compare your goals
to what you actually spent. If you find that you’ve got money
left over, GOOD JOB! Add it to your savings. If you see that you
spent too much, find ways to cut costs.
I don’t want to spend too much time on
this, but I can’t tell you how many people I’ve met that have
filed bankruptcy due in part to a gambling problem or a
substance abuse problem. If this applies to you, get help. Don’t
let these things ruin your life. Visit HelpGuide.Org for help
with
gambling,
drug, and
alcohol problems.
Next Step: Step Two