4 Ways to Create a Financial Plan and Avoid Bankruptcy

It’s easy to lose track of your finances and end up becoming bankrupt. However, you can set a financial plan in place to better keep track of your money, credit balances, loans, etc. Below, are four ways you can start creating a financial plan.

Create Financial Goals

The first step you need to take to make a financial plan is to make financial goals. For example, do you want to tackle a specific amount of debt? What kind of financial cushion do you want to give yourself? 

Do you want to spend less on your credit cards to increase your credit score? Although you should set plenty of goals in your financial plan, you want to make sure you’re only setting achievable ones.

Watch Your Credit

It’s hard to even rent an apartment without having great credit. This is why it’s so important to constantly keep an eye on your credit scores, disputing any errors and prevent overspending credit cards, which can lead to a lower credit score. 

Fortunately, you can get a free annual credit score from the three main credit reporting bureaus, but you can also use online credit monitoring sites like CreditKarma.

Begin Saving

In order to achieve the financial goals in your financial plan, you have to start saving up. Whether it’s to pay back a loan, credit account, or simply have more money in the bank, saving is where you should start. 

This means setting a certain percentage of your paycheck to your savings account and building up from there.

Talk to a Bankruptcy Lawyer

One of the most important steps of creating a financial plan and avoiding bankruptcy is actually talking to a bankruptcy lawyer. Your lawyer can help you devise a more detailed financial plan on the steps you need to take to improve your finances, reach your financial goals, and avoid falling into bankruptcy. 

A consult with a bankruptcy lawyer is an investment, especially if have a lot of debt and expenses that you need to get on top of. Just make sure you do plenty of online research first before hiring a bankruptcy lawyer and compare quotes in your area.

It’s usually not too challenging to create a financial plan, but sticking to one is. Remember, without a solid financial plan or at least financial goals that you can stick to, the worse your finances will end up becoming. 

It’s important to have money in the bank, improve your credit score, and start reducing your debt. If you don’t start taking these steps today, you may never be able to improve your financial situation.