When you are in debt, it is important to accept the situation you are in, before you can take any correctional steps to get out of the hardship. After such acceptance, one focuses on repaying the debts.
But is that enough? What happens after you have paid off all your debts? Is there nothing else to gain from this experience?
Well, at Barefoot Bankrupt, many of us have been survivors of such financial hardship situations ourselves. And we believe that after settlement of debts, and after discharging your bankruptcy, if active steps are not taken to reflect and learn from the situation, then there is a chance that sooner or later, you may find yourself in the same financial hardship as earlier.
By reflect and learn, we mean that you identify and ponder over those mistakes that you made because of which you went bankrupt or which led you to being in a condition of prolonged indebtedness. After carefully examining and understanding your mistakes, it is vital that you set clear goals for yourself so that you don’t find yourself in that same situation ever again.
Some things that you may probably learn from your experience could be:
- To hire a business consultant
- To regularly contribute a fixed amount to an emergency fund to safeguard yourself against future mishaps
- To never attempt to make withdrawals from your superannuation
- To focus on spending only from your cash income that you have in your hands, and to avoid credit cards completely
- To devise a financial budget for yourself and your family (You can find some interesting money management tips here)
- To set financial goals in terms of how wealthy you want to be and what assets you would like to have, especially by the time you retire (One might not really be inclined to think about the future, but it is lack of such futuristic approach that leads to long-term financial trouble)
The idea here is to think and to act proactively towards building a financially secure future for oneself. The above list is not exhaustive. And there are many other smaller tools that one can use on their journey post-debt.
For further help and information, feel free to contact us here!