After you successfully filed for bankruptcy and the process ends, it's now time to rebuild your life financially. One of the best ways to do this is to downsize, and there are several ways to do it. One advantage of downsizing is that you will have more money for long-term goals such as an emergency fund, savings for a less expensive home, retirement contributions, investing, and starting a home-based business that could generate income. The downsizing process also doesn't have to be drastic. Sometimes a simple change such as walking more places can save you money.
Moving Back Home
While most young adults desire to live on their own, you might need to downsize after filing for bankruptcy to save on housing costs by moving back in with your parents. Make sure you contribute financially as much as possible and help out with chores. Be diligent in looking for a stable job and save up money to find an affordable place after you find work. Respect your parent's house rules.
Live in a Smaller Home
If you're able to purchase a home after the bankruptcy process ends, skip the big home and move to a smaller one. When you move to a smaller home, you won't be able to have a ton of unnecessary items in it. This enables you to be less tempted to buy things you don't need. Your utility bills can be reduced if you don't use up a lot of energy in your new home.
Get Rid of Unnecessary Subscriptions
Another way to downsize your life is to cancel any unused subscriptions you have. These subscriptions include cable, magazines, meal kit services, or your daily newspaper. This helps you cut expenses and you can use more of your money towards the things that mean the most to you.
Declutter and Sell What You Don't Want
Another thing you can do to downsize is to declutter and sell what you don't want in order to earn extra money. Start by going through each room in the home and taking out the items you're getting rid of. Put the items in different boxes or bags and label them with index cards and markers. You can give some of your items to close friends, neighbors, and family members.
Consider Working from Home
If you want to downsize and have more time with your kids after dealing with bankruptcy, apply for remote jobs. Websites such as Indeed and FlexJobs have updated remote job listings of positions from a variety of sectors. Narrow down your search to the industry you work in and be as truthful as possible when filling out applications.
Send Kids to Public School
While you're trying to rebuild your finances after bankruptcy, it might be wise to take your kids out of private school and place them in a public school for now. Explain to your kids that while you know they'll miss their friends from their previous school, they will have to attend a different school because it is the cheaper option for you. Talk about how your kids will be able to meet friends at their new school and have fun experiences there.
Cook More at Home
Instead of eating out every week, cook more meals at home. To save on groceries, buy your favorite items in bulk when they go on sale. It also helps to plan your meals with the foods you already have in your pantry to avoid repeat trips to the store.
In conclusion, downsizing can help you put a tough chapter behind you and build a better financial future.
If you need assistance with filing for bankruptcy, contact us. We offer the guidance you need to get through this process.