Chapter 13 bankruptcy allows you to get control of your finances once again. Budgeting is crucial in this case, as you must adhere to the repayment plan provided by the court or your bankruptcy may be revoked. Because sticking with a budget can be difficult for even the most well-intentioned people, The Balance offers the following helpful tips to ensure a bright financial future ahead of you.
If your budget is too strict you may be setting yourself up for failure. It’s unrealistic to say that you’re going to stop all non-essential spending, as very few people can actually live a life of such austere means. Instead, occasionally treat yourself to things like dining out or going to the movies as a reward for keeping to your budget. Just make sure that you’re not constantly spending money on non-essential purchases, such as a daily cup of coffee.
In the same token, it’s easier to keep with a budgeting plan when other people can hold you accountable. While some people are averse to making their financial woes known, doing so can actually make you more likely to stick with your plan. Consider sharing your budget ideas on social media and posting regular updates on progress. Knowing that others are aware of your budget might make you less likely to indulge in unnecessary spending or divert money away from savings.
Finally, be sure to keep track of your savings success to motivate yourself to go even further. Start by setting small goals, such as creating an emergency savings fund of $1,000. Once you reach this goal, set your sights on an even higher amount. If you do share progress on social media, be sure to inform others when milestones are met so you can revel in motivational praise and positive reinforcement.