By: Joshua Finley

Bankruptcy can be a draining experience physically, mentally, and financially. Many people find their mental health suffering after bankruptcy. Bankruptcy can lead to an increased risk of depression alongside increased anxiety or difficulty with racing thoughts. Many people may also struggle with poor self-worth or self-concept after bankruptcy.

Filing for bankruptcy, however, isn’t just about a financial fresh start. It can also be a mental one. With these strategies, you can mentally start over following your bankruptcy.

Reset Your Priorities

After your bankruptcy is finalized, take a moment to reset your priorities. In particular, this is a great time to refocus on your physical and mental health. That can mean:

• Putting more activity in your day
• Eating healthier foods
• Finding ways to reduce stress
• Spending more time with friends and loved ones
  

Take the time to lay out your priorities–both financially and non-financially. Often, revisiting your priorities can help you focus on the things that are most important to you and allow you to improve your overall health and wellness. For example, if healthy eating is a priority, decreasing spending on junk food–and choosing not to eat it! can make a huge difference in both physical and financial health.

Write a Budget

Sit down and put together a new budget: one that allows you to live within your means. Start by listing out your fixed expenses: the ones that are the same every month, and that you might not have control over. Consider things like your rent, utilities, or car payments.

Next, take a look at your variable expenses. How much do you have to spend on food, gas, and entertainment each month?

Aligning Your Budget with Your Priorities

When your priorities are out of whack and you’re struggling to come up with a solution to your regular needs, it can be difficult to keep your spending under control. Take a look at how your current spending aligns with your priorities. Consider:

• Are you paying for subscription services that don’t meet your needs? Do you have money coming out of your budget each month that doesn’t reflect your real priorities?
• Where is your entertainment spending going? Does it go to the hobbies and activities that are most important to you, or are you accidentally overspending in areas that don’t matter?
• Are you allowing yourself to get pressured into expensive activities with friends, even when you can’t afford them?

By taking a look at your actual spending and how it aligns with your priorities, you can remove spending that doesn’t fit your big-picture plans.

Don’t Forget Debt Consolidation or Relief

If you’ve used debt consolidation services, make sure they’re accounted for in your budget. Try not to take on more debt, especially optional or unnecessary debt, during this time.

Give Yourself the Gift of Grace After Bankruptcy

Bankruptcy can be mentally stressful and difficult to manage. However, by using it as a clean slate, you can overcome many of the challenges you have faced and allow yourself a fresh start.

 

Published By: Aize Perez