Chicago Bankruptcy Lawyers Say Even Saving is Best in Moderation
It's said that everything is best in moderation, even good things. That's why I'm here to make the case for saving LESS.
Don't get me wrong, saving is still the underlying theme of most posts on this blog. Unless you're about to get a massive raise at work - or, you know, have a money tree growing in your backyard - stashing cash is the only way to make more money. It's a way to give yourself a raise, no boss needed. A realistic budget can be a great tool for allocating the things you might like, but don't really need, to the things you do need - like enough money to pay the utilities bill and your rent or mortgage.
But I've seen folks go overboard and actually endanger their well-being because they're so intent on maximizing savings. It's easy to identify a luxury good when looking for places to cut back - cable TV, a gym membership, restaurant meals and your 30th pair of shoes, for instance. It gets more complicated when figuring out how to scrimp on the necessities.
Take your medical needs. If you're low on cash, using generic rather than name brand drugs is a relatively safe way to save big bucks. While maybe not ideal, you're still getting the same dosage and effects as the original drug. Compare that to the far more risky option - not taking medicine or even going to the doctor because you can't afford to part with the funds.
It's not only health-related. Check out two more examples.
Good: Giving up extras like cable so you can cover a tax bill. Bad: Not paying your taxes, period.
Good: Contributing little or nothing to your savings for a few rough months, knowing that you will get back on track soon. Bad: Cashing out your 401K at work because you need money NOW.
Get the idea? Here's the bottom line. You shouldn't have to sell your future to get by in the present. If it feels like that's the direction you're headed, get help. No amount of savings is worth your health or dignity. There are healthier options out there - like bankruptcy, for instance.
Filing for Chapter 13 automatically stops foreclosure so you can create a repayment plan for your debt - a plan that takes your individual needs into account. Want to find out if a bankruptcy plan is right for you? Simply fill out our free personal debt analysis form and a DebtStoppers attorney will take a look at your situation and answer your questions at no charge.