If we have a good job, and we think our life is set for the next couple years, we often never think about bankruptcy. Bankruptcy can happen to anyone, and actually it happens to more people than you’d think. It is a scary thing, that you want to prepare for as much as possible. Do whatever you can do avoid it, and never let yourself fall into that position. If you consider a few of these tips, you can help avoid bankruptcy for the rest of your life!
Limit credit cards – First of all, you want to avoid getting more than a few credit cards. It is easy to sign up for more and more, and max them all to their limits. Then before you know it you have interest rates attacking you, and credit card debt over your head. Try to stick with cash or debit as much as possible.
House – Avoid buying too big or expensive of a house. Find one that is great for your lifestyle and nothing more. The bigger the more you’re going to have to heat and cool, the more you’re going to have to fill it with furniture, the more problems capable of happening, etc. Not to mention you will be working the rest of your life to pay it off!
Investing – Investing too much into one basket is dangerous. Every job on this planet is dangerous. It could disappear tomorrow, you could be laid off, fired, etc. Therefore you never want to invest a ton of money into the stock market with your company that you already work for. That’s two times the gambling.
Emergency fund – If you have an emergency fund started or you start today, you will be putting off bankruptcy. This is extremely important. They say you should have 6 months worth of money. This means rent money, gas money, bill money, grocery money, everything. If you don’t have this already you need to work on it.
Overspending – Overspending in general is a dangerous habit. You should always look for the cheapest deals, use coupons, and buy only what you need instead of want. Sure, it’s okay to spend some, but make sure you at least set a budget for yourself each month.
There are millions of people that are in debt. There are also several people who have nothing to their name. Don’t let this be you! If you can make changes starting today, and consider a few of the tips above, you’ll be much better off!