Organize your finances by setting a budget that can help you handle debt, secure your current and future financial situation as well as ease the stress that is often associated with managing personal finances. Your circumstances will determine whether or not you should spend less.
Track Spending Habits
Making better financial decisions such as saving more can go a long way towards enabling you to take charge of your finances. Start by gathering the information that you need to keep track of your spending. This includes bank statements, receipts and bills that will give you the ability to estimate your expenses for every month.
- Finance software is widely used to help people to customize their budgets, project their spending and understand how they spend their money. There are different types of software programs to choose from online. Along with budgeting software, a chart or spreadsheet is a good way to highlight your income and expenses.
- Clear information allows you to identify the areas within your budget where spending can be reduced. Calculate your total income and expenses for the year by using information from bank statements. This will give you a clear and precise account of your finances.
- Depending on whether you have a fixed income or one that varies with each month, documenting monthly revenue is a good way to view how much you earn each month. List down your expenses and consider aspects such as monthly bills, groceries, gas, entertainment and shopping.
Tracking annual spending is beneficial towards helping you know how much you spend because many people downplay how much they actually spend each month. Evaluate your income and expenditure to find out if your expenses are more than your income. Such a situation indicates that you are not living within your financial capabilities.
Bankruptcy- Getting Professional Help
People file for bankruptcy under various circumstances such as financial difficulties, job losses and illness. Although it may be something that you do not want to do, the reality is that Chapter 7 and Chapter 13 filing may be the best option in your situation.
Dealing with Debts
Hiring a bankruptcy lawyer will help to facilitate the opportunity you need to deal with debts that you are unable to pay. If you are afraid of losing everything because of what you owe, hiring an attorney who will help you file is crucial for your peace of mind.
Unsecured debts are dealt with through Chapter 7 while Chapter 13 gives you more time to pay off debts. An experienced lawyer will be able to guide you on the best options for your case, how to save as much as possible and get rid of debt.
While creditors may still be able to call you after filing for bankruptcy, your bankruptcy attorney will be available to handle such calls on your behalf. Since many people are unaware of the filing process and what it entails, hiring a lawyer is necessary for providing the professional assistance you need to understand your finances, handle the details and prepare the paperwork.
Brain King is a freelance writer and aspiring author. He describes himself as a friendly person who likes to share ideas and build meaningful relationships with other people. His hobbies include bike riding, swimming and surfing. Click here for the law blog.