financial education

Avoid Bankruptcy with Habits of Financially Stable People

Before Bankruptcy happens to you there are things that can be done to gain control of your spending habits. Oklahoma Bankruptcy at Marty Martin Bankruptcy Law always gives you his attention and will clarify any questions you have about Bankruptcy. Call today at (405) 255-2380.

People say they do not have the money for the things they want. The truth is most people do have money, but they don’t know that the money is there. The truth is they are unaware of how to use their money. Financially successful people know how to manage their money. They know how to save it, and they know how to make it grow. There are plenty of wealthy people who did not start with tons of cash. They learned the ways of money management.

Stick with the 50/30/20 rule. 20% of your income needs to go into savings. A maximum of 50% goes towards necessities, and 30% is for discretionary items.

  1. Saving your money is the most important thing to do first. As soon as you get paid, add 20% of it into savings. Treat it like you are paying a bill. People tend to pay everybody else before they pay themselves and are left with nothing. If you budget right, everyone, including yourself, will get a little. Banks will automatically transfer a percentage from your paycheck in your checking account into savings so that you can save money without even thinking about it. Store your change or an extra $10 in an envelope, cookie jar, shoebox on a weekly basis. ($10 a day will make you $500 in a year.)
  2. Be aware of your impulse spending habits. Are you aware when you spend money on something that you do not need? Most people don’t. Be mindful of things like shopping online or quick trips to the convenience store. Being unaware of when you buy an unnecessary item is the most significant drain on your finances. If you are unsure about how to monitor your spending habits, carry a notebook in your car. Every time you spend, write it down. Soon you will see how many extra dollars and cents go to things that you didn’t intend..
  3. Evaluate your spending habits in your notebook and see where you purchased things that you didn’t need and then adjust your habits. Ask yourself similar questions like these. Did I go food shopping when I was hungry? Could I buy the same sports drinks at a regular grocery store for much less than what I spent at the convenience store? Did I buy more items than the planned items that I originally went shopping for? If the answer is yes to all of these, then you are impulse shopping.
  4. Invest your money-If you have access to an IRA, start there. Use the maximum amount allowed for your employer to match. There are a ton of useful tools online to get you started with very little money. You can invest as low as $100.00. Doing research is the task at hand. Start with money that you can afford to lose. You don’t know it, but you can afford to lose twenty espressos a week. There are easy ways to start investing online with very little money. 
  5. Have an emergency fund for your family- Be sure to have a will if you have a spouse or dependants. You can easily write a quick online will to be sure that your family will be supported in case something happens. Get life insurance if possible. 
  6. Pay off all of your debts-Pay bills as soon as possible. Always start with the lowest bill that you have and pay that first. Call the people that you owe money to and make a plan that will work for both of you.
  7. Read all you can about money and finances-There is a ton of informational tips online how you can save money, learn like the pros and increase the value of a dollar. Take advantage of the unlimited information available for you.

Call Oklahoma Bankruptcy Experts at Marty Martin Bankruptcy Law to answer any question you may have about Bankruptcy and regain your financial stability. Call (405) 255-2380.