After Bankruptcy...need tips to manage finances??

Question

Okay, Hubby and I recently filed Chap. 7, I start new job in another week and a half. 2 bills that weren't filed (went into collection way after the filing), have surfaced on credit report. I need tips on how to effectively manage our finances. I don't wanna go into a new year broke anymore!!!

Answer 1

Strict budget is the only truly successful way. You can purchase a budget program or simply set-up a spreadsheet in Excel for tracking expenses.

Set-up one worksheet with each month and an annual tally, then enter a row for each item you will Need to pay throughout that year and enter the estimated amounts for each month. This will help keep you on track because it allows you to look ahead and not think 'Oh we have a little extra, let's splurge' then come up short the next month. It also reminds you those months you will have non-regular expenses coming in such as car tags & property taxes. You might consider dividing these periodic expenses by 12 then putting the monthly required amount into a savings account each month, the savings can Only be touched for those expenses. That way when that expense comes due you have the money accumulated for it instead of one big hit.

Set up another sheet that lists the expenses in rows and a column for each day, final column is a monthly tally of the row with monthly totals at the bottom. These monthly amounts will roll over from month to month. Then sit down daily (at the very least twice a week) and enter your monies spent that day for each item and income made that day. This allows for real time tracking of funds and also for identifying areas where you may be able to cut back.

Set up a third worksheet like the first one but that links to the monthly totals so you can start to see what your actual monthly spending requirements are and where you might save.

Know that you need to stay on top of your spending because it is easy to get out of hand if you don't. Once you know your required monthly expenses and your monthly income, you could divide the savings by 30 and make that your daily allowance. So you are not allowed to purchase anything you do not have the cash savings for without it being an absolute emergency. Take advantage of all savings opportunities, including second hand stores, grocery coupons, and trade shops that you can trade your old stuff at. Every little bit counts, it does add up and can make the difference. Make a committment that for at least one year you will buy Nothing that you do not Need, give yourself a chance to get stable. Good luck!

Answer 2

READ READ READ financial management books... the library has many to choose from and you need to educate yourself obviously if you were in such a hole that you filed.

Your life WILL NOT CHANGE unless YOU make it happen... no one here can help you take control and get your butt out of the hole you have dug. ONLY YOU can read, make changes, and follow a plan that will make your future bright.

Stop spending all the money.... IF you must spend then why not spend it on things that make you more money such as investments or rental property. Pay your bills ON TIME and realize only you have YOURSELF to blame for this hole. YOU can come out on top if you simply make changes from what was not working to doing things that DO work.

Find a mentor who is financially where you want to be. Keep in mind those on the street whom appear rich are usually those with the biggest debt and the smallest asset column.

Again I say READ READ READ.... And follow the advice of financial planners known for helping people like yourself such as : ricedelman.com or suzyorman.com.

You have anew beginning ahead of you.. CHOOSE to make it great !!

Answer 3

Spend less than you make. It's really that simple. If you have trouble with credit card, stick to paying for things in cash. Once you get your spending in line (again, less than you make), start saving. The best thing you can do is to set up an automatic deduction into a mutual fund. A lot will let you start with nothing if you set up automatic purchase of $50/month. This is how I started over 15 years ago and it has made a huge difference in my financial situation.

Answer 4

Interesting that you say "manage finances" instead of "build wealth" or "achieving financial freedom". There are 100s of tips to help manage finances, like budgeting, carrying less cash/credit cards, eating out less, spending less on entertainment/luxury items, downshifting to cheaper brands & vacations, buying secondhand and not new, etc. IMO, cutting expenses & costs as much as possible is the most important thing. But I think it's more important to get into the right long-term frame of mind, the "build wealth" state of mind. If you really want to build wealth, you're going to have to go on a strict financial diet (that's how it'll feel for first-timers), and that takes a clear, disciplined willpower + mental attitude. You're going to have to cut the financial fat from your life, and it might not be easy at first, since you're probably used to having the fat of all your expenditures. Clarify your financial goals (financial security/freedom, etc.) and remember them every time you make a purchase, asking yourself, "Is this really necessary for my life? Do I need this to live?" Usually, that answer is no. If having little or no money in your bank account worries you, then which is more important, the new pair of shoes or the extra $50? All the little things add up, not just in life, but also in your bank account. It might seem scary and painful in the beginning to cut costs, but actually it's about discovering and getting back in touch with what's really important in your life - your friends, family, yourself. Because hey, when you cut back spending on all fronts, you're basically just left with your raw self and your relationships. If you go without spending more often, you'll find that you'll end up having more, and being more. What you lose in spending, you'll gain not just in your bank account, but also inside yourself - less worry, less stress, less needy, more clarity about what's truly important in your life. And of course, being financially richer.

Answer 5

You need to discipline yourselves to spend less than you make. The best advice for this is: pay yourself first. Open a savings account, decide how much you want to save every month, and deposit that money first, before you pay for anything else. Then budget for your living expenses, and stick to your budget. If you have money left over, good for you! If you come up short, figure out where you went wrong and correct it. You are both going to have to work together, or you will fail. One partner cannot do it alone. If you ever want to get ahead, you have to learn to live beneath your means. If you can't afford it, you don't need it.

Answer 6

Maybe you could discuss your finances with your bank manager or with a trustee in bankruptcy. Good luck.

Answer 7

The other advice is great. Email me more information for specifics.