Avoid Bankruptcy by Creating a Budget for the New Year

The New Year is right around the corner and with that comes a fresh start. The New Year is an opportunity to do things right with a clean slate. This pertains to all facets of life, including your finances. You can avoid a Union Grove bankruptcy by creating an itemized budget for the New Year. Now is the time to create your budget and not allow your finances to go into arrears.

While preparing your taxes for the past year, you have access to your income and spending information which will help you create a new budget for the New Year. Do not dely. Create your budget and commit to it. Committing to a budget is the main key to avoiding a Union Grove bankruptcy in the upcoming year. To help you with the budget creation process, we have put together three useful tips.

Budget Creation Tips to Avoid a Union Grove Bankruptcy

1. Remember the necessities. When creating a yearly budget, most people remember to include their utilities and other expenses that come in the form of bills. However, they forget to include other necessities of living, such as groceries and gas. Don’t under-budget on these items. If you spend $500 a month on groceries, you need to include that amount in your budget. If you do not spend the amount budgeted, you will have more money that month for savings and “unexpected expenses” like a furnace repair or car repair.

2. Set aside cash for indulgences. When you start looking at itemized expenses on paper (take a look at your bank statement), you will be surprised how much money is spent on small, and useless, expenses such as: fast food, restaurant dining, movie rental, coffee shop expenses, entertainment, gas station items (candy bars, water bottles, soda…), etc. It all adds up to a huge amount! Do yourself a favor and set aside a fixed amount of money to spend on frivolous items and entertainment. Take the amount in cash and when it’s gone, it’s gone.

3. Remember to save. You must set aside some money for savings. You will always need back up funds for retirement, car repairs, job loss, injury, medical expenses, etc. You never know what is in store for the future. A great way to do this is to set up automatic transfers with your bank. Your bank can automatically pull “x” amount of dollars from your checking account into your savings account at specified time periods. This way, you never miss it. Not saving for unforeseen expenses is the best way to fall into arrears and be confronted with filing a Union Grove bankruptcy.

In addition, we would like to note that there are many ways to create your budget. You can create your budget on paper, in a spreadsheet such as Excel, or use a free online program or app to assist you. You can find tools online by performing a simple Google search.

Follow these three important tips when creating your budget and you will be well on your way to a financially successful New Year. Sticking to the budget is going to be key to success. Having a budget and sticking to it can help prevent a first or another Union Grove bankruptcy filing.

Contact Our Union Grove Bankruptcy Office

If you have bankruptcy questions, please contact our Union Grove bankruptcy office. We offer a free initial consultation and can help you find solutions to your current financial problems. Call our Union Grove bankruptcy office at 262-725-0175.