How to adjust your lifestyle after filing bankruptcy?

  • Thread starter Thread starter sureenay
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sureenay

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Unfortunately, my mother is in the process of filing bankruptcy. Now my question to all of you is, how do we adjust our life without credit cards? Also, in the midst of all this, how should she start saving money for retirement? Any helpful tips will be greatly appreciated.
 
You work from cash or a savings account if you can't get a checking account. Forget having a debit card as it would be trouble.

When money comes in, it gets earmarked for essentials first. So much goes in the rent or mortgage envelope, so much for food, so much for utilities, etc.

Some things go away for now. Cell phones are luxuries. Have a pre-paid one if there is an essential reason but there probably isn't. No high-speed internet access. Cable TV may have to go.

Shop carefully for groceries and plan meals from simple ingredients, not packaged ones.

Be sure there is an envelope for savings. At least 5% of each income check goes into it.

Now when you have saved enough, you can have a luxury item. It's like eating your spinach before your dessert. It leaves a sweet taste in your mouth after the meal is over.
 
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