While filing for bankruptcy in the first place may not have been because you spent too much, saving money after filing is perhaps the best decision you can make. While it may seem obvious that overspending after bankruptcy is unwise, many make the mistake of buying old clothes with clean credit cards and more cash.

You may be having trouble getting a loan or credit card. It takes time to rebuild credit after bankruptcy. But it can definitely be done and you can start shopping soon enough. The only problem is that some take this to an extreme. Saving money is the answer. This article says that saving money can be a challenge, but it’s one you have to embrace.

Do not make the same mistake…
What got you into the trouble that led you to file for bankruptcy? In other words, what did he spend money on, what medical bills did he receive, what interest rates did he face, and what bills did he wrestle with? Sometimes it’s not his fault that he filed for bankruptcy. He may have suffered an injury, received a $40,000 medical bill, and only had to file one application.

It doesn’t matter why you filed, because you should save money after filing for Chapter 7 or Chapter 13 bankruptcy. The more you save, the better chance you have of avoiding filing for bankruptcy a second time.

Protect the assets you still have
You probably have some assets and property that you want to keep. Maybe you filed for bankruptcy to protect them. Now, with the money you have saved and earned, put it in the bank account. Instead of spending your checks on expensive dinners and other items, you can protect your home, car, and other assets. If you get into trouble again, you may not be able to file bankruptcy a second time (you have to wait 8 years for Chapter 7 and 6 years for Chapter 13). Therefore, if you want to keep what you have, save it.

Pay all bills early
A bad habit many of us have is paying bills when they are due or paying a late fee because we forgot. This needs to stop if you really want to save time, money, and headache, not to mention rebuild your credit. To rebuild your credit, you need to avoid being late on your bills, and the best way to handle this is to pay your bills early.

build your credit
As just noted, the more money you have, the better chance you have of paying your bills on time. If you save more money, logic says you can rebuild your credit. If you save money and pay bills on time, including credit and loans, you’re rebuilding your credit in the best possible way. Then you can get a new credit card or loan when you need it. This is a great benefit that many overlook.

Liberty
Yes, spending money can be fun. And when you have a job, you deserve the right to spend the money how you want. But true financial freedom comes when you save. You don’t need to put off certain bills to pay your mortgage. You don’t need to take phone calls from creditors all the time. And there’s no reason to worry about a second bankruptcy if you have money saved. Bankruptcy itself frees you from debt. Take advantage of that benefit.