There are so many different ways to approach the subject of filing for bankruptcy that it only seems fair to spend some time focusing on how bankruptcy can be prevented in the first place. While no single practice is a sure-fire preventative method, here’s one that can make a big difference:
Ask Yourself: Do I Need This?
When you go out shopping, having a list of what you need, and sticking to it is the best way to prevent overspending. However, if you’re still working on that money management skill, force yourself to ask, “Do I need this?” anytime you catch yourself eyeing an item on the shelf.
If the answer is ‘no’, walk away. More often than not, people who are facing bankruptcy trouble have gotten into their situation by refusing to regulate spending. When you make a conscious effort to improve your money management skills by cutting down on spending, you create a better situation for yourself.
Though it might seem silly to ask yourself this question while contemplating any purchase, you’ll find that this small practice can make a big difference in your life! Also, it doesn’t mean you can’t ever purchase something that you don’t need. Instead, this question encourages you to come up with a responsible plan (and budget!) for making that frivolous purchase.