Ideal Ways To Prevent Bankruptcy
Most people think that if you file for bankruptcy, you can easily get your way out of debt, but then again, that is not really the case. People would often file for bankruptcy and start all over again, just to be able to do what they did and they would go bankrupt again. It is a cycle that needs to end, don’t be like them. There are actually consequences that you must face when if you declare bankruptcy in the U.S. such as, having to attend mandatory credit counseling, mandatory financial-management education, and also make ongoing payments to your creditors. Although it would totally help you, you wouldn’t exactly want to put so much effort into it since what you would think of is to pull yourself together to get back up again.
[su_quote cite=”Mokokoma Mokhonoana” class=”cust-pagination”]“Millions of business people are each constantly forced to choose between their desire to not be a bad person and their desire to be a good business person, that is to say, to make as much money as possible can be by maximizing their revenue while minimizing the cost of producing whatever is that they sell.”[/su_quote]
PAY YOUR BILLS ON TIME
The very first thing that you must do in order to avoid being bankrupt is to make sure that you always manage to pay your bills on time. If you have employees, make sure to pay them on time as well, if you cannot pay all of them, then you wouldn’t have a choice but to get rid of them.
Getting a loan is not an option especially if you know that it would only help you for a short period of time. Paying your bills on time will definitely help you out since that will be one less thing to worry about.
SETTLE YOUR DEBT
If you are in debt, make sure to pay for it as well. It is not ideal to get into debt especially if you know that you wouldn’t be able to pay for it. It is also not ideal to get into another debt just to be able to pay for the previous one. No one lives a good life while they’re in debt, so avoid it as much as you can because it might be the one to bring you down.
MINIMIZE EXPENSES AND MAXIMIZE YOUR INCOME
If you know that you are struggling, do not be in denial. Being in denial would only make your situation worse than it already is. The very first thing that you must do is to try to minimize your expenses, do not spend money on things that are unnecessary, and just focus on what is really important. Also, while you’re minimizing your expenses, you must also focus on maximizing your income.
Look for ways on what you can do in order for you to be able to earn more money. For instance, you own a small restaurant, if a business isn’t going well, then look for the possible reasons why. Check if your food is good enough if your service is great if the prices of your food are decent. If everything seems fine, then try thinking of creative ways to advertise it, especially in social media. Have promos or coupons, these things would definitely invite people in.
HAVE AN EMERGENCY FUND
It is always ideal to save money, especially for emergency funds. Not a lot of people think that this is really necessary but once they have experienced some struggles, they will realize that they should’ve saved some money for their emergency funds.
[su_quote cite=”Dalai Lama” class=”cust-pagination”] “Man, because he sacrifices his health in order to make money, then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; he lives as if he is never going to die, and then dies having never really lived.” [/su_quote]
Life can totally be unpredictable sometimes, that is why you must always be ready for what it may bring you, whether it is good or bad. If you cannot really handle it anymore and you really have to file for bankruptcy, don’t fret. It is not the end of the world, you can still pull yourself back up and start all over again, it may not be easy but with a positive mind, nothing is impossible.
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