Sunday, September 16, 2012

8 tips to avoid personal bankruptcy | Ways To Reduce Debt

Article by suwapact

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8 tips to avoid personal bankruptcy.

Bankruptcy is a situation that arises when an individual, groups, or corporate bodies cannot meet its debt obligations. A person is therefore said to be bankrupt when he cannot meet his financial obligation as they arises. This is personal bankruptcy. The purpose of this article is not to provide legal counsel or recommendation. It simple focus is to help individuals see what they can do to avoid this chapter that is better left unread. If you are interested in a financially secured life for your family, then you must pay attention to the following tips.

Educate your children

The first step is to do your homework by educating your children to be financially responsible. As a parent, you must help your children to understand that life is not always a bed of rose. Do not spoil your children; if you do they become ungrateful and abusive when you become bankrupt. Spoilt children are always ungrateful children. Encourage them to save part of their allowances. Help them to see the benefit that can come from taking up menial job. As they engage in this they come to realize that making a leaving is not very easy. This will not only put some dollars in their pocket but also help them to adjust spending. This will greatly help the household.

Establish and maintain good saving habit.

Foremost and most important step in this direction is to open a savings account. You must save consistently in this account. Do not allow your saving to be dictated by ?spurs of the moment?. The amount to be saved at the end of each month must be determined well in advance. This helps you to follow an established saving pattern. Any deviation therefore can be noted and correct because you have a standard of measurement.

Have a budget

A budget is a statement detailing your expected revenue and how is to be expended. It?s best for you if your revenue is greater than your expenditure. If your expenditure is greater than your revenue it imply you are inviting the most unwanted. The budget must be clearly stated and written down. There is little or nothing you can do to influence you income in the short run. That been the case, you must maintain a strict budget. Avoid the use of rule of thumb, but be more scientific in your approach. Your budget enables you to have a good projection of future events.

Save for emergency situations.

There should be provision for emergency by setting aside regularly a certain proportion of your earnings. If you have emergency fund you will not result to borrowing when emergency arises. Emergency fund of 00 or above is more appropriate. It need not be achieved in a day but is advisable you start building at the next opportunity. Build consistently and watch it grow.

Cultivate good maintenance culture

It?s far cheaper to have regular maintenance instead of repairing. A substantial amount of money use for repair can be use to carter for other necessities if you take note and act promptly. Another reason why you need to give attention to maintenance is that with due diligent you may be able to carry out most maintenance exercise. At this point you might be saying: it make no difference to maintenance than to repair. I must not fail to tell you that it very cheap have enough water in your radiator; have a regular check on your engine oil; etc. it takes little consciousness for your engine to run smoothly and you agree that a smooth engine save a lot of energy.

Avoid unnecessary expenses

Avoiding unnecessary expenses may dictate that you move to small apartment after your children might have left home; that you cut down on gas usage; it may require moving to area you pay reduced rent if you don?t have a house of your own.. Can you learn to effect minor repair on your car? Such as changing spark plug; changing punctured tyre etc. it cost you lees to get the needed instrument than calling expert at all time. Can you make do with smaller car? You can buy a second hand car instead of a new one and maintain it regularly. The above steps have the potential of reducing your expenditure appreciably.

Learn to do without.

If our brother in developing countries of Asia, Africa and Latin America can do without many necessities of life because the can not afford it, it means that people in affluent lands can consciously do without some luxurious item. Should we eat ourselves to death while about 800 millions of our brother in poor countries goes to bed hungry everyday? Can you set something aside regularly to support charitable organization? Support our brothers in war torn countries? We will be teaching ourselves a great deal of financial discipline in the process.

Never overdraw your account.

Resist with all strength you could muster the temptation to overdrawn your account. At this point you may have succeeded in creating a budget, try as much to implement it. Take your budget off the book and put it in yourself. Do you overdraw your account to pay for movies ticket; sporting event; and other related matters? Take note you might be inviting the detestable chapter. They do worth it. But what if you are already headed in this unintended direction? Not too worry there is way out without filing bankruptcy suite. Always log in to this site.

The above has been really edifying in the area of personal bankruptcy. The eight tips, which are not mutually exclusive, states in a clear term what needs to be done to avoid personal bankruptcy. However, admiring them alone is not sufficient, it must be matched with appropriate action.

About the Author

suwapact is an expert in matters relating to finance, including bankruptcy. He is thouroghly grounded in this subject and thus eminently qualify to provide counsel.

Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author?s information and copyright must be included.

suwapact


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suwapact is an expert in matters relating to finance, including bankruptcy. He is thouroghly grounded in this subject and thus eminently qualify to provide counsel.












Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author?s information and copyright must be included.

Source: http://www.waystoreducedebt.net/8-tips-to-avoid-personal-bankruptcy/

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