When it comes to saving money, a little know-how, some commitment, and practice all make the task easier as time goes on. Setting your child up with the opportunity to start saving money from a young age is an awesome way to ensure that they are prepared to make smart saving and investing decisions once they start working as an adult in the real world. Assigning paid tasks around the house and using jars as “bank accounts” for saving and spending is an effective foundation to start with. Here, you’ll learn tips, tricks, and techniques that can be implemented as your little one ages to accommodate their learning abilities and maximize their chance of saving success in the future.
Teaching Your Little one to Save Like a Pro
Four Things To Avoid Before You File For Bankruptcy
Claudia Bravo
Filing for bankruptcy isn't considered a pleasant task, but the relief you will feel once the proceedings are over can be well worth the stress. Unfortunately, there are things you may unwittingly do before you even file the bankruptcy paperwork that can have a negative effect on the process. Knowing what they are can help you avoid them:
#1: Leave your retirement investments alone
It can be tempting to drain your retirement account to try and pay off some debts, but it will backfire unless you know it will pay off everything and that there is no danger of going back into debt. In most cases, your retirement investments won't be liquidated by the court to pay off debt – in other words, they are a safe place for your cash. So leave your retirement accounts alone so you will still have the money come retirement. Otherwise, you may find yourself working well into your golden years or worse, destitute and unable to work.
#2: Don't transfer money to friends or family
This can be particularly tempting, especially if you owe money to a friend or relative. The problem is, in the eyes of the court and your creditors it looks like you are trying to hide assets by transferring them into someone else's name. The court can demand the money or property back from the friend or relative, which will then strain your relationship. Instead, make plans to repay your friends and relatives after the proceedings are over and you have fulfilled the stipulations of your bankruptcy.
#3: Put your credit cards away
A common mistake is to go on a spending binge, especially if you still have open lines of credit. This can get your bankruptcy denied or at least the recent charges denied. If it looks like you have been spending on purpose in an attempt to get a bunch of new things and then reneging on payment with the help of bankruptcy, the court won't look kindly on you. If you must continue to put things on credit in the months leading up to your bankruptcy filing, make sure they are only the necessities, such as bills or food.
#4: Don't jeopardize your home
This isn't the time to take out a second mortgage or open up a HELOC, even if you do qualify prior to the bankruptcy. Not only could this fall under the above warnings about running up credit card bills, you may be jeopardizing your home. Often, you will be allowed to keep your home in a bankruptcy, especially if you will be able to keep up with regular mortgage payments, you have no mortgage, or if the lender is willing to lower the payments or interest amount. If you have added multiple mortgages or debt onto the home, though, you may end up losing it since there will be no way to bring the payments down to a number you can realistically pay.
Contact a bankruptcy attorney for more help on chapter 7 bankruptcy.
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