There are two main actions you can take to strengthen your personal finances, despite the coronavirus pandemic. First, you can take various steps to save money for your future. Second, you can take additional financial steps to avoid any future financial setbacks from bad credit, low retirement funds, or emergency situations. Taking these steps will not only improve your finances but can also significantly decrease your chances of a financial catastrophe in the future like bankruptcy. If you ever find yourself falling towards bankruptcy, then reach out to a Tennessee bankruptcy attorney for guidance.
Save for Your Future
There are three key steps you can take to save for your financial future. You can create a budgeting plan, save for retirement, and cut unnecessary expenses. Creating a budgeting plan is not impossible, but not always easy to get into the habit of either. The steps for creating a budgeting plan include:
- Examine and write out your spending habits
- Calculate how much money you spend each month and on what (i.e. bills, hobbies, going out to eat, groceries)
- Calculate how much money you would like to save by a certain time (i.e. end of each month or end of this year)
- Divide the money you spend into necessities and non-necessities
By writing your budgeting plan down, you have a clear set of goals to achieve that will help guide you in the financial direction you want to go. Keep in mind, these are your goals and therefore your choices. You can choose how much money you want to save up and by which time you want that money saved up.
Saving for retirement might not sound fun right now, especially if retirement is far out into the future, but saving a little bit each year sooner than later can make massive differences in how much money you will have once you retire. Put money into your savings each paycheck, month, or year.
Cutting expenses is another factor that is not often fun. Prioritize what you spend your money on and stop spending money on anything that is at the bottom.
Avoid Potential Financial Setbacks
Three ways to avoid financial setbacks are to pay off your debt early, avoid building credit, and purchase decent insurance. This means buying affordable insurance for your health, car, and life. No one can predict accidents and expensive medical bills that can follow without health insurance.
Add up the maximum amount of debt you can afford to pay off each month and do this. Once your debts are paid, they are gone for good. Avoid credit cards if possible or at the least, avoid using credits cards on a regular basis. Credit has a way of coming back to hurt people later.
Bankruptcy Attorneys in Chattanooga, TN
Cutting expenses and making financial sacrifices is not easy for everyone. Whenever you find yourself falling behind financially or close to bankruptcy, be sure to reach out to our lawyers in Chattanooga, Tennessee, and North Georgia.
You can call Tom Bible Law today to talk to a Bankruptcy lawyer in Tennessee at (423) 424-3116 for a free consultation. Our legal team of bankruptcy attorneys is located in Chattanooga, Kingsport, and Tullahoma.