Declaring Bankruptcy - 5 Common Expenses to Avoid
Bankruptcy is probably the biggest financial decision anybody is going to make in their lives.
But before you decide on anything, scrutinize your finances and cut your expenses first.
When you've cut unnecessary expenses you might realize that you can better manage your budget and that declaring bankruptcy isn't needed yet.
Below are a few expenses to consider to stretch your budget: Day-to-day Doodads Robert Kiyosaki was the one who coined the term "doodads.
" This refers to all the little trinkets and whims you buy that can hurt you financially, since they do not give you any monetary returns.
Doodads can range from a pricey car in the driveway to daily coffee breaks at Starbucks.
Now that's not saying that you can never enjoy a cup of coffee, but have you seen the prices of a latte nowadays? It's very easy to splurge hundreds of dollars in snacks a month without even noticing it.
Such expenses accumulate very fast.
You don't notice them until you realize your wallet is empty.
The sad thing about this situation is that sometimes you can't even remember where you spent the money.
You must make a conscious effort to cut down on these things as little purchases can add up very fast.
Presents Do you have the habit of giving expensive presents to make an impact on your clients? This is one habit that must be stopped if you want to keep your financial boat afloat.
Car payments If you're having financial problems, it would be wise to sell the new car to free up some badly needed cash.
There's nothing wrong with driving the old reliable.
Impulse buying This is associated with doodads.
Look around your house and identify the not so useful things that you've accumulated over the years.
You're in for a big surprise -- you'll probably find so many things with so little use.
Credit card charges It's pretty simple.
Stop using your card.
If you don't have the cash for it, chances are you cannot afford it.
Doing so will only give you more headaches as your debt will continue on rising.
It will cost you more to file for bankruptcy since you will have to get professional financial and legal help.
But before you decide on anything, scrutinize your finances and cut your expenses first.
When you've cut unnecessary expenses you might realize that you can better manage your budget and that declaring bankruptcy isn't needed yet.
Below are a few expenses to consider to stretch your budget: Day-to-day Doodads Robert Kiyosaki was the one who coined the term "doodads.
" This refers to all the little trinkets and whims you buy that can hurt you financially, since they do not give you any monetary returns.
Doodads can range from a pricey car in the driveway to daily coffee breaks at Starbucks.
Now that's not saying that you can never enjoy a cup of coffee, but have you seen the prices of a latte nowadays? It's very easy to splurge hundreds of dollars in snacks a month without even noticing it.
Such expenses accumulate very fast.
You don't notice them until you realize your wallet is empty.
The sad thing about this situation is that sometimes you can't even remember where you spent the money.
You must make a conscious effort to cut down on these things as little purchases can add up very fast.
Presents Do you have the habit of giving expensive presents to make an impact on your clients? This is one habit that must be stopped if you want to keep your financial boat afloat.
Car payments If you're having financial problems, it would be wise to sell the new car to free up some badly needed cash.
There's nothing wrong with driving the old reliable.
Impulse buying This is associated with doodads.
Look around your house and identify the not so useful things that you've accumulated over the years.
You're in for a big surprise -- you'll probably find so many things with so little use.
Credit card charges It's pretty simple.
Stop using your card.
If you don't have the cash for it, chances are you cannot afford it.
Doing so will only give you more headaches as your debt will continue on rising.
It will cost you more to file for bankruptcy since you will have to get professional financial and legal help.
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