We've talked a lot about rebuilding credit after bankruptcy; but building a substantial and adequate nest egg after bankruptcy is just as important. But how can debtors' exiting bankruptcy find financial strategies which will create stability now and in the future?
Let's take a look at a few tips:
1. Get a long-term financial vision after exiting bankruptcy. Where do you see yourself during retirement? How costly is that lifestyle.
2. Get a short-term financial vision after exiting bankruptcy. What type of lifestyle do you want to live now? Does your income and spending habits support the vision you have?
3. Ask yourself if you short-term and long-term financial visions are in line with the reality of your situation. For example, if you're a 50 year old just exiting bankruptcy and making under $30,000 a year, is a six-figure retirement a realistic goal?
4. Once you have made the assessment recommended in point #3, you need to either align your vision more with reality or come up with strategies to change your current situation. This may mean changing jobs or even careers. Many debtors exiting bankruptcy use the fresh start as an opportunity to retrain and change careers. One thing is for sure, after you have more options available to you bankruptcy.
5. Once your vision and current situation are aligned, it's time to come up with short-term and long-term actions which will help you build your nest egg and reach your goals. One of the things we tell bankruptcy debtors is that they must have an emergency savings plan; but they also need to have a savings plan which can help them reach their financial goals. For example, if part of your strategy is to rebuild your business after bankruptcy, then saving and/or raising enough capital might be part of your post-bankruptcy action plan.