Preparing for Recession: Bankruptcy, a Solution for Peace of Mind?

Preparing for Recession: Bankruptcy, a Solution for Peace of Mind?

Preparing for Recession and Considering Bankruptcy as an Option to Save Your Sanity

The war in Ukraine and the COVID interruptions to the American economy are significant. Many say a major recession is around the corner. As a result, we see the prices of fuel, food, goods, and services increasing because of inflation and out-of-control prices. Cars are sitting in lots that cannot be sold because they are waiting for computer chips from China that are backlogged. While the global economy many talk about makes it more affordable to obtain what we need in some cases, in other situations when things are bad or problematic, they affect everything else.

Few people reading this article understand serious recession and stagflation that haven’t been experienced since the mid-1970s into the early 80s. The time is now to start getting ready and there are important steps to take to save money and protect yourself and your family to afford necessities that might cost a small fortune. This does not need to be bad news or send anyone into panic if they have the time to prepare.

Joseph Wrobel Limited is the Chicago bankruptcy law firm that helps people get rid of bad debt and get back to being able to save money for the future and what could happen, and that is why preparing for recession and considering bankruptcy as an option to save your sanity is recommended.

Why is The Economy Unpredictable?

Predicting what is going to happen in a complex globally influenced economy is difficult. Some financial experts and advisors look at historical trends and data that influence the economy and decisions about what to do with money. Whether buying or selling stock, a home, or a car, there are good times and bad times for local and global economies. Now is one of those troubled times and people are starting to react to the prices that keep skyrocketing out of control. Meanwhile, other items might be affordable, but they are not available due to supply shortages.

Unprecedented times and experiences make things unpredictable. For example, a recent news headline claimed that if something doesn’t change quickly with rising fuel prices, truckers are going to be hanging up their keys because they can’t afford to transport goods. That not only makes prices spike, but it also makes necessary items unavailable.

The Cost of Everything Increasing and What You Can Do to Save

As the prices continue increasing, we must make money stretch further. A wise parent once said the amount of money you can save is more important than the amount of take-home pay. The trick is living thrifty and spending less money. Most healthy humans are readily adaptive and can get used to new situations. We spend so much time stressing about what we don’t have, that we fail to appreciate what we already have. If we lost everything tomorrow, would we again take it all for granted?

Empty nester parents eventually only use a few rooms of their homes yet pay to heat, insure, and pay taxes on unused space. Yes, the investment and equity arguments are sustained, and additionally, we should recognize all the other ways money can be acquired and accumulated outside of home ownership. Some of the very wealthy swear that owning property for personal use outside of investment, is just a liability, and many of those wealthy people are renters, or albeit very nice places, but rented, nevertheless.

Aside from saving money on housing, the spending patterns, and things we spend money on, might be habits we want to break, when we take a closer look at our spending in focus. We spend money every month on name-brand cell phone companies while we can get similar services and features through independent competitor providers yet few take advantage of these savings opportunities.

It’s all about creating a habit of not taking products and services for granted. Think about how you are spending your time and money. Invest time in finding alternatives that free up your life and money.

Job Loss and Layoffs During Recession and Stagflation

Be prepared for anything. Yes, during times of political and economic disagreement and turmoil, it is common for people to make extreme statements. Depending on who you ask and when you ask them, the world is the best or worst. Meanwhile, remember the suggestion of having at least several months of money saved to pay bills and live in case of income interruption. But what happens if for some reason there is a job loss situation where it becomes necessary to pivot or become self-employed? How could you adapt if you had no alternative?

Stagflation was a big economic cloud over the late 1970s and early 80s when people lived simply and with few extras. For many, not since the Great Depression had so many been disadvantaged on a widespread basis. There are economic and financial experts who warn people to think long-term now and get ahead of potential economic downturns and stagflation experiences.

If you lost not only your job but your entire industry where your experience is valued, what would you do? Could you start a small business and what would it be?

Getting Ahead After Bankruptcy, Getting Ahead of the Pack

Inspiration stories of successful people who stumbled to get there make us believe that anyone can overcome adversity and reach whatever success in life they put their mind to. Before we can spring forward, sometimes we need to shed the weight of financial mistakes and bad debt weighing us down. Chapter 7 and 13 Bankruptcy can help you get the past off your back today!

Saving Money and Getting Out of Debt

When using the Chicago Bankruptcy Firm of Joseph Wrobel, Ltd, you can get rid of old debt and get a fresh start, saving you money every month to build the life you and your family want. We can help you be the one to take your future into your own hands. When we meet with you at one of our offices, we give you a clear picture of your rights and options so you can determine if it makes sense to file a Chapter 7 or a Chapter 13 Bankruptcy.

Learning How to Invest One Penny, Nickle, and Dime at a Time

Time is money, and you can’t grow time, but you can grow money. Plant a money tree by doing something that makes you money without requiring your direct time and effort. Buy a business that makes money, then buy another business, and repeat until you have multiple income streams. Things that seem impossible in most people’s lives can become reality when we put ourselves in the position to succeed.

Is this the last time you fall victim to the world and bad things that happen to you despite doing everything right? It’s time to take your future into your hands now and do whatever it takes to get there no matter what.

Need to Get the Dead Weight Off Your Gack? Call Joseph Wrobel, Ltd., Your Chicago Bankruptcy Law Firm (312) 781-0996