6 Ways To Overcome Bankruptcy As A Low Income Earner.

Financial bankruptcy is a state of being without money in order to meet various financial needs and exigencies. Everybody, despite our financial status, had at some point in our lives being in this kind of state or situation. However, most persons are more frequently financially bankrupt than others because of various reasons. But among all the other reasons, not having enough money to meet all or some basic financial needs is obviously one of the major reasons why so many persons often becomes financially bankrupt. And this is basically the situation with so many low- income earners.

Since low-income earners do not have the privilege of making or having enough cash to cater to their basic needs, and it's worse if they do not know how to effectively and efficiently manage the little money they get, they therefore no doubt, frequently experiences financial bankruptcy much more than the mid and high-come earners.

It's basically for this reason that in today's post, we want to consider six ways most low-income earners could be able to overcome financial bankruptcy, and stay financially afloat despite any situation.

Six Practical Ways To Overcome Financial Bankruptcy:

1. Plan Your Expenses:

Planning your expenses is the foundation for maintaining a healthy financial lifestyle and overcoming bankruptcy. But it's quite unfortunate that so many persons, not just low-income earners are very extravagant in how they expend money. You see, money isn't easy to get, because it's an essential and invaluable legal tender. Any cash you expend, whether rightly or wrongly, can never come back to you again. But when it is rightly and wisely spent, it gives an inner satisfaction and fulfilment that'll definitely replace the perpetual irrecoverableness of that money.

It's for this reason that planning your expenses or the things you'd spend money on, even before you get the money is very important. In one of my previous post on six effective budgeting techniques for Iow-income earners. I did list six factors you need to consider in preparing a personal budget that's highly efficient. This is very essential, because having a personal and effective budgeting plan before you spend any money means planning your expenses, and also one of the best way to overcome financial bankruptcy and live a debt free life.

Most persons often experiences financial insolvency and complains of being broke because they're impulsive buyers, who can spend to get anything, whether they need such things or not, without first planning. This is obviously bad money management practice that will always leave you broke financially. But for you to overcome this situation, and come out of being always financially bankrupt, then you must for sure be frugal in your expenses, through planning it ahead of time.

2. Saving Ten Percent of Every Penny You Get:

Saving 💰 money is a very important part of personal finance management that can never be overemphasized. There's nobody who's frugal and financially sagacious that neglect having some savings, particularly in these days of uncertainties. Financial savings gives you leverage, backup and financial backbone to be able to withstand any emergency situation that needs cash to be taken care of. Thus, without savings, you either become indebted or watch the situation overwhelm you.

Just imagine how much you would've been worth by now if you had been saving at least, ten percent of every penny you get right from when you started getting money till date. I bet you would've grown in your finances that you'd have enough money to start that business or acquire that asset. Saving is by far the most important way of staying financially afloat, because you've got cash in hand to confront any financial exigency. However, its never too late to start saving ten percent of every penny you get. A decade or five years ago was the best time to start saving, but today is the second best time to start.

3. Investing In Stocks And Shares:

It's possible that some of us may not be that disciplined enough to be able to keep or save physical cash. It's basically for this reason that investing that money you do not presently have any need for, in buying stocks and shares as a low income earner is very important. There are many brands and companies across in different regions and countries that often advertises for their shares and stock to be bought, both on traditional media and also online. This shares and stocks often comes at a very cheaper rate per unit. You could buy as many units as you want, and watch your dividend grow with time.

Investing in stocks and shares is no doubt one of the major way you can overcome bankruptcy and remain financially afloat as a low income earner. The good thing about this, is that you could decide to invest in it long-term, and only withdraw from your dividend while your capital still remains intact. If you're finding it difficult to save your cash as a low income earner, investing in shares and stocks is definitely the best way to overcome bankruptcy.

4. Have Multiple Streams of Income:

Having a multiple streams of income is very adviceable for everyone, especially for low-income earners who do not have enough money to meet all their needs. As a low income earner, it's risky depending on just one income source. It will not only affect your buying or purchasing power, but it will often make you broke financially, which could also lead to financial state of depression.

You could decide to work part-time in different places or do different things that frequently brings 💰money into your purse or wallet, so as to avoid being indebted to anyone or perhaps become financially incapacitated. In these days of inflation, uncertainties and high cost of living, it will not suffice depending on just one source of income, not even for a low-income earner like yourself. Thus, you must think of other things you could do to add to, or augment your income.

5. Acquire Personal Assets:

As a low-income earner who had perhaps saved enough cash or have some residual income that you do not know what else to do with money. I think acquiring personal assets that has got long-term monetary value is the best way to go for you. Assets are what makes you more money after sometime. It's also a form of personal investment, that requires you to own some properties that could be later converted to money.

Some basic assets you could acquire are: artworks, home goods and appliances, land, trademarks, patents, marketable securities, distribution rights, and anything that could be of monetary value in future, are some of the assets you can acquire or buy, in order to remain financially afloat during financial and economic depression times.

6. Buy For A Long-term Benefit:

I've noticed that most low-income earners often prefers to spend little for short term benefits than spend more to get the long-term advantage and benefit. Sometimes, they do it to save cost or they're just used to spending very little even when they've got more money to spend to their own advantage. This is clearly a bad money management practice that'll always make you become financially bankrupt. If you're doing this, you've got to stop it. Because you're rather being more financially ill-advised than sagacious.

Spending more to buy something for a long-term benefit, will enable you to save more money, and it's also more financially advantageous to you. For instance, paying five dollars monthly for something, when you could actually pay some fifty dollars annually for the same thing is rather being financially unwise. If that thing is a basic necessity that's so important to you, then you certainly need to allocate more funds to it, so you'll get the longterm advantage and benefit. Thus, you'd be saving more cash monthly from that thing, while still enjoying the benefit for a very long time.

Conclusively, to become financially broke is absolutely possible, regardless of the amount of cash you've got. Similarly, to remain afloat financially, is also very much practicable depending on how disciplined and determined you are. Following these six ways I've listed above, will help you to be ahead of the pack and gain financial stability in no distant time.