Often our clients ask their bankruptcy lawyers how they can on top of their money situation after they file for bankruptcy. One of the best things you can do is create a comprehensive budget. Getting your finances back in order after bankruptcy is important to avoid falling back into debt. A budget can help you stick to financial goals and ensure you always have enough money at the end of the month. Use the following tips from a bankruptcy lawyer at Groce & DeArmon, P.C., to create a great budget for yourself.
Compare Your Income and Expenses
The first thing you need to do is determine your take-home pay for each month. You’ll want to figure your after-tax income to get the most accurate estimation. After this, determine your necessary expenses. That is, things that must be paid such as rent, utilities, groceries, debt payments, etc. If your bankruptcy lawyer worked out a payment plan for your debts, make sure you’re including those payments into your fixed expenses. Determine what the net amount is after those necessary expenses, and look at that money as what your actual take-home pay is. The necessary expenses should always take precedence over everything else.
Set Up Savings and a Safety Net
After you determine your net income after expenses, you should consider setting aside some of the leftover amounts for savings and a safety net for emergencies. Putting away some of this money every paycheck ensures that you’ll be prepared for unexpected financial occurrences. Luckily, this has become easier than ever with the evolution of technology. You can now connect mobile apps to your bank and cards and have it set aside money for you automatically. All you have to do is download the app and set your deposit rules.
Set Goals and Stick to Them
Set financial goals for yourself and try your best to achieve them. For instance, let’s say you want to pay off the rest of your student loan debt in 5 years. Look at what your net income is and determine what you have to set aside each month to meet that goal. Setting realistic goals is a great way to really get a grip on your finances and get better at managing your money.
Contact a Bankruptcy Lawyer at Groce & DeArmon, P.C.
If you’re deep in debt, sometimes the help of bankruptcy lawyer is your best option. A budget won’t do much good if you’re unable to make all the necessary payments within your means. That’s where Groce & DeArmon, P.C. come in. We can help you erase your debts or make the arrangements for a feasible payment plan. Give yourself the chance for a fresh start. Contact us today for more information and to schedule a free consultation with a bankruptcy lawyer.