Bankruptcy is defined as a legal proceeding involving a person or business that is unable to repay outstanding debts. Before the debt is incurred there are choices made, selections and it is those selections that render or send one into a state of bankruptcy. To be bankrupt is to be depleted, out of options in a state of mind where the problems or debt has overtaken one’s ability to be creative or to replenish funds.
Before one becomes financially bankrupt he or she is emotionally or socially bankrupt. The way spends money or distributes his or her income is greatly affected by his or her emotions and social status or the appearance thereof. People tend to spend where they are going instead of where they are. Combine that with others around them that may be in diverse financial places the natural tendency leans toward people spending or living according to the patterns of others. Additionally, people naturally compare his or her success or measures it by those his or her age, their accomplishments and most importantly their financial position. It is rare that one stops to consider or even inquire about how a person ascends to the level of their lifestyle. Even rarer is one’s desire to go through the process of acquiring or moving into wealth instead of looking for a quick payout or payoff.
For many bankruptcy is viewed as a new start; but a new start with an old mindset, is nothing but another opportunity to make the same mess. Managing money can be learned but one must be willing to learn it. Sometimes it seems belittling for one to teach you about your money but that’s not the intent. Self-discipline in any area is an art and financial discipline is no different in fact it can more difficult. To allow one to help you with your money is so personal and many feel that they will be judged and rather than acquire help, they wait till bankruptcy to obtain information or open his or herself up for help. It’s more belittling to allow emotions and social status to rule your spending.
Avoid bankruptcy by establishing boundaries and limits in your finances as well as your emotions and social status pressure. Lifestyles are progressive so set limits on the things you will acquire or buy based on your situation. I don’t mean live like a pauper but resist buying a BMW that you park outside an apartment. Set goals for the material things one desires and then maneuver your ability to make money so that your money or ability to earn the money is in line with the lifestyle or material things one desires. Set boundaries on those whom you allow to influence your decisions. Don’t be moved by any and everybody; and even when you find yourself impressed, gather an understanding of how, the process of the person’s gaining his or health wealth. So rather than imitating a lifestyle one can grow into a lifestyle.
Bankruptcy is avoidable. It’s a state of being overwhelmed by one’s own choices. Learn what drives you to do what you do BEFORE the need to file for bankruptcy. Instead of becoming bankrupt, you could be well on your way to becoming prosperous and wealthy. It’s a matter of your choices!