Young Couples: How to Avoid any Bankruptcy Possibilities

Nobody ever gets married these days thinking they will eventually get a divorce. And, no one ever goes into a partnership expecting to go bankrupt at some point. Also, no one ever plans on ever having the need to file for bankruptcy. Nevertheless, an increasing amount of people were certainly filing bankruptcy in record numbers until the laws for filing bankruptcy were altered in 2005. The reason why so many people have filed for bankruptcy in the past has really been due to the fact that many people didn’t know how to manage money independently. So, when they faced marriage and joining their assets together as a couple, they found that it was even more difficult to manage themselves financially.

Quite often, if young couples were just given some tips to follow in order to help them to get started out on the right financial foot, then the idea of bankruptcy could be avoided altogether. Below are a few tips young couples should read and consider:

• Did you ever bank separately before you decided to get married? Of course you did! That is why you should always continue to do so, regardless of what any book tells you to do. The reasons why couples have a difficult time balancing their checkbooks is due to the fact that they have no idea what the other person is doing with their money. So, always try to keep it simple and separate!

• Never charge anything in your financial habits. If you have credit cards, then pay off the balances and forget about charging over your limit.

• Don’t forget, cash is the master so try to buy only what you can pay for straight away with the exception of your home purchase.

• Try to buy a used car until you can afford, and really afford a brand new car.

• Try to invest in every retirement plan that you can—you might need it one day.

• The moment you decide to have a child, you should start to try saving for their college education and later life.

• Consider UPromise and many other college saving ideas which are available today. Try to go online and find out the best way to save for your child’s college.

• Never ask your parents for a loan. It will cause too many problems in families and even after you pay them back, you will still owe them. Also, the siblings could become jealous. Be wise and try not to borrow from relatives unless you must.

• If you want something really desperately, try to get a second job for a while in order to pay for it. There is indeed nothing like the gratification of earning your own money for the things you might want and need. Even if it takes you two or three jobs to get there!

There is no reason for anyone to ever need to file bankruptcy if each person within the couple unit works together and sets some ground rules down about budgeting. Try to learn to work together in a financial manner so the finances never drive you apart as a couple.

 


J. B. Smith is a contributing editor at DebtFinanceArticles.com. This article may be reproduced provided that its complete content, links and author byline are kept intact and unchanged. No additional links permitted. Hyperlinks and/or URLs must remain both human clickable and search engine spiderable.