As this New Year gets underway, you should consider creating a budget that will allow you to keep your finances under control. This is especially important if you have just emerged from bankruptcy and you begin enjoying the fresh financial start that your bankruptcy provided you.
The following are five common budgeting mistakes that people make and why you should avoid them:
- Get outside help. There are many studies that indicate our financial behaviors are learned early in life. When you start having financial struggles, it may not be helpful to seek advice from family members who are often facing the same issues. Obtaining outside guidance from a debt relief attorney or even a nonprofit consumer credit agency can drastically improve your chances of recovering from your debt.
- Clearance shopping. Although it is a good idea to buy things on sale instead of paying full price, an unplanned shopping spree can create a significant financial problem for you later if it is not within your budget. Before you go to check out the sales, create a list of the items you really need and try to adhere to it. The more you wonder through the store “just looking,” the more likely you are to overspend.
- Buying low quality items. If you are trying to live on a budget, it is tempting to always buy the cheapest item available. However, you should consider the investment quality of your purchase. If buying cheap means low quality and you will have to buy a replacement item next year, it may be wiser to spend a little more for a quality item that will save you money in the long run.
- Be flexible. It is usually impossible to live consistently by a strict budget, because life events will require your budget to be flexible. If your must spend money to repair your car one month, make adjustments to cut-back the next month. If your budget is not working, make adjustments. Don’t get frustrated and give-up. Continue making changes until you find what works best for you.
If you have tried living on a budget and you are still feeling overwhelmed by your debt, contact us to schedule an initial consultation. We will review your financial situation and help you determine the best debt relief strategy available to you.
If you are considering filing for bankruptcy protection, let us help. We understand how important your bankruptcy case is to you, and we will handle it with the discretion and dedication that have become our calling cards. Contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC today by calling 414-377-0518. Like us on Facebook.