Filing for bankruptcy offers you the opportunity to make a fresh start, so what better time to consider it than the New Year, which is well known as the time for making resolutions and improvements. The New Year is the perfect time to set yourself realistic financial goals that will put you on the path to a better financial future. Here are our top bankruptcy resolutions, for any time of year.

• Budget

Smart budgeting is key. Maybe you’ve never given yourself a budget, or maybe the budget that you worked with before was not well crafted. Either way, after filing for bankruptcy it is essential that you make a list of all of your monthly expenses broken down into whether they are fixed (like housing or car payments that are always the same and come every month), variable (like food, entertainment and clothing) and irregular (unexpected expenses like gifts you have to buy, or medical bills). The best way to do this is to go through your bank statements to see what you’ve spent in the past. After you’ve made your list, figure out how much you want to save each month. Saving is an important part of your new financial journey.

After you’ve figured all of these things out, look at your fixed expenses and see if you can lower or eliminate any of them, then do the same with your variable and irregular expenses. You can realize savings by cutting down on eating out, by not buying clothes unless you need them or only buying on sale, by cutting out paid channels on your cable bill, and by buying less expensive gifts. Figure out how much your take-home pay is for the month and then compare it to your expenses to make a budget. Make sure that you’re not spending more than you’re making, and if you are, cut more out of your budget.

• Save What You Can

Save extra money. The budget you set up must set aside money for savings. Once you have the amount figured out, set up an automatic deduction from your checking account to be put into your savings account without you having to do anything. Direct deposit is another smart way to achieve this goal. Having these savings build up will help you build up an emergency fund to prevent you from going into debt in case something unexpected comes up.

• Be Smart About Using Your Credit

There are great credit options for those who have gone through a bankruptcy. A secured credit card is a great example. this kind of credit option allows you to build your credit by using it to make purchases. The credit card is secured by a deposit, though. This limits your spending ability to what you actually have. You should limit credit usage as much as possible (if not completely) outside of credit and loan options strictly meant for building your credit. Use cash instead.

There are many more things you can do to rebuild your credit and put yourself on a solid financial footing, but these are important first steps and the New Year is the perfect time to introduce them to your life. For more assistance with dealing with bankruptcy, contact us today to set up a time for us to meet.