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Embracing Financial Resilience: A West Palm Beach Bankruptcy Attorney's Guide

Financial concerns are probably one of the top stressors for many people. Whether struggling to pay their monthly bills, covering their mortgage or car loan, paying off their credit card, or retirement planning, many people just can’t seem to stop worrying about their money problems. This is where financial resilience comes in.

Financial resilience is basically a person’s ability to cope with unexpected life events that significantly affect their financial health or withstanding financial challenges. These life events include health problems, job loss, disability, divorce, and natural disasters that impact people differently. But it’s how you deal with them that matters.

How to Develop Financial Resilience

Certain financial practices, like the ones below, can help you increase or build financial resiliency.

Get Your Monthly Budget in Order

This is extremely crucial, even if your current financial health is fine. You can easily maximize your resources if you maintain a reasonable budget of your available funds. Make your most essential obligations a priority, including food, utilities, and transportation. You should also consider suspending automatic bill payments until you’ve taken control of your finances.

Start Building an Emergency Fund

Generally, your emergency fund should cover three to six months’ worth of your expected expenses. Consider keeping this fund in a savings account, short-term certificate of deposit (CD), money market fund, or other cash equivalents.

Invest in Yourself

Look for education and job training opportunities so you can develop new skills that will make you stand out in today’s immensely competitive job market. Make sure to take care of your physical and mental health as well. Study financial and investment topics to help you make smarter and more strategic financial decisions. If necessary, consult with a professional to get you started.

Consider Purchasing Life and Disability Insurance

If you don’t have a life insurance plan yet, consider getting one, especially if you have dependents. This will help protect your family in case something happens to you or if you get injured or sick.

Address Any Existing Debt

If your creditors aren’t willing to offer you alternate payment options, consider bankruptcy. In most cases, people file for bankruptcy after exhausting all their available options for paying off their debts. For example, if you know that you can’t possibly repay a costly outstanding debt, are receiving calls from debt collectors constantly, or can’t pay your mortgage and foreclosure is imminent.

Filing for bankruptcy and admitting that you need a fresh start on your finances sooner rather than later will help you save some assets you want to keep and pay off most of your debts. Working with a West Palm Beach bankruptcy attorney will help ensure that you complete and submit the required paperwork and requirements to win your bankruptcy case.

Embracing financial resilience can be difficult, but it’s the only way to stay on top of your finances. If you need help getting your financial affairs in order or are considering filing for bankruptcy, contact our West Palm Beach bankruptcy attorney, Brian McMahon, today. Schedule your free consultation by dialing 561-658-1789 or reaching us online.