Changing your approach to spending is a necessity after bankruptcy. You’ll turn over some control of your finances to the court when you file, so you’ll have no choice but to live more frugally. But it’s not all bad news. Life after filing bankruptcy is filled with a lot of positive things, too. You get a fresh financial start and a chance to do over many of the mistakes you might’ve made in the past.
One of the smartest things you can do is to make better financial decisions that prevent future problems. Living frugally after bankruptcy is not only a temporary requirement, it’s a smart approach to living life and avoiding a second filing.
What are Some of the Benefits of Living a Frugal Lifestyle?
You’ll learn how to deal with tough financial times. Most people face lean financial times at some point in their lives. There are varying degrees of hardship, of course. But no matter what “cutting back” means for you, you’re going to learn valuable lessons from tightening the purse strings. Spending less than you have now and having a plan for how you’ll deal with financial challenges in the future goes a long way in preventing serious financial problems.
Frugal living fuels more frugal living. For many people, the toughest hurdle to overcome about frugal living is the thought of going without. Once you experience the benefits of your frugal living, you’ll be motivated to find more ways to live within your means. The sense of financial freedom and relief of having money set aside for emergencies motivates you and encourages you to keep going with your new frugal lifestyle.
You’ll avoid accumulating more debt. Life after filing bankruptcy is all about avoiding having to file again. Bankruptcy gives you a fresh start. It’s important to take advantage of this clean slate. If you’ve filed for bankruptcy, you already know what debt can do to you. Staying out of it by making frugal choices avoids all of those problems you’ve left behind you and allows you to save for the future.
Frugal living teaches you financial management skills. It requires carefully considering spending decisions and forces you to prioritize your purchases. The more you do this the more comfortable you get. You’ll also feel more in control of your money. Before long, good money management becomes second nature.
Making Frugal Living Easier
It’s understandable why you wouldn’t embrace frugal living if you’ve not been living this way for a while. It also makes sense that someone emerging from bankruptcy – where the court gains a significant amount of control over your spending temporarily – wouldn’t be eager to continue to restrict their spending.
The good news is there are things you can do to make a frugal lifestyle more appealing. For example:
- Set a savings goal. Saving for the sake of saving or for an emergency is smart, but it’s not always so easy to stay motivated by an abstract never-ending goal. If you’re struggling to keep spending under control, set a specific savings goal and reward yourself when you reach it.
- Alter your mindset. Frugal living isn’t about being cheap. Many people have preconceived notions about pinching pennies that aren’t too appealing. Frugal living doesn’t have to mean missing out on anything or denying yourself a joyful life.
For more tips on frugal living, check out this list from Microsoft News.
An Experienced Attorney Helps You Build a Better Life After Filing Bankruptcy
Life after filing bankruptcy can be great, but it’s going to be different. The choices you make as you emerge from bankruptcy and start fresh set you up for success in the future. For many, this means making frugal choices and managing their money better than in the past.