The New Year is traditionally a time for a fresh start, and if you’ve just gone through a bankruptcy, it’s the perfect time to rebuild your financial health. As you turn to a new calendar year, think about establishing some new habits, setting financial goals, and adopting strategies that will help you achieve financial stability. Here are a few ideas to help you along the way.

• Start by creating a realistic, reasonable budget.

Everybody talks about sticking to a budget, but few people actually sit down and write one up. Financial experts say that doing so can make a big difference, and it’s not hard to do. Start by analyzing your income and your expenses. Write down what you spend on necessities like housing, utilities, food, and transportation, and how much money you have coming in. If the two don’t balance, then you’ll need to figure out where you can cut. Look at unnecessary expenses like subscriptions. Ask yourself whether you need something or want it. There are plenty of budgeting apps that can help you go through this exercise. If possible, try to prioritize savings and debt repayment.

• Build an emergency fund.

Things come up, and you need to be ready – otherwise, you’re likely to try to pull out a credit card and get yourself back into trouble. You don’t have to save a lot to make a difference. Set aside a manageable amount that you’ve included in your budget and stick to it.

• Work on rebuilding your credit score.

Bankruptcy will hit your credit score hard, so rebuilding your credit is important. Apply for a secured credit card or credit-builder loan and be responsible about using it to make small, regular purchases that you’ve already included in your budget and paying off the balance in full each month. Making timely payments is important to show that you’re reliable and worthy of future trust from creditors.

• Ask for help

There is no shame in bankruptcy and none in asking a financial advisor or credit counselor for help. That’s what they’re there for. They can provide you with advice on the decisions you’re making and can also help you avoid predatory lenders.

It’s easy to fall into the trap of feeling anxious or depressed about your financial condition after a bankruptcy filing, but the New Year is a great time to adopt a positive mindset. You can definitely do this! If you need guidance, don’t hesitate to contact our experienced bankruptcy attorneys. We’re here to help.