How To Totally Whiff On Opportunities Provided by Personal Bankruptcy
A woman profiled in a recent USA Today article gives a perfect example of how NOT to approach life after personal bankruptcy. We share a summary here.
Marge’s Mistake
As Marge (not her real name) was emerging from personal bankruptcy, she was excited to tell personal finance expert Peter Dunn about her joy. “We have two more $757 monthly payments remaining (before) our Chapter 13 bankruptcy is over and life gets much better,” she said. But rather than using the upcoming financial clean slate as an ideal opportunity to put a cool $9,000 in the bank within a year, Marge and her husband instead were eyeing a new set of wheels. “Since we won’t have a bankruptcy payment anymore, we figure we could spend about $650 on a monthly truck payment,” she said.
Marge Didn’t Realize What’s At Stake
After trying to talk Marge out of making yet another financial mistake, Dunn discovered that she had not made a winning financial choice for over 10 years. “Making winning financial decisions matters,” Dunn writes. “But sadly, many people don’t make winning decisions in situations like Marge’s because they simply don’t realize what’s at stake.” In Marge’s case, opting to devote 86% of her positive cash flow to an asset that will only depreciate in value and one that – even by her own admission – she didn’t really need is definitely a losing decision.
How to Make Winning Financial Decisions
If you’re not following a budget, Dunn wisely offers this advice for making winning financial decisions. “Set a 30-day financial goal and run hard at it,” he advises. The goal can be simple, like saving $300 or committing $300 to pay down a debt within 30 days. Track your progress aggressively. The feeling of hitting the winning mark, in most cases, will be contagious and make it much easier for you to do it again and eventually get into the habit of making winning financial decisions.
Call The Oswalt Law Group for Winning Financial Strategies
If you’re tired of living with crippling debt and don’t see a way out, we can definitely help you. The first consultation is always free, so call us at 602-225-2222.