How to effectively downsize your life in California before and after bankruptcy

Those who have already filed for bankruptcy or feel they are headed to bankruptcy should know how to downsize to save money.

If you have recently filed for bankruptcy in California or feel you are well on your way to having to file either Chapter 7 or Chapter bankruptcy, there are plenty of steps you can take to downsize your life to help improve your financial house. Even consumers who are doing well financially are sure to benefit from examining their lives to see what changes they can make to save money and their peace of mind.

Use your mail as a guide

Your mail says a lot about you, and is the perfect place to start as you work to downsize your life. For instance, if you have a lot of mail from credit card companies, banks and the like, ask yourself if you absolutely have to and need to do business with them. Maybe you can go from having four or more credit cards to just two. For those accounts you keep, try to pay off your remaining balances as quickly as possible, and learn to use your cards only when you absolutely have to.

Ask yourself if you really need storage space

If you have downsized before, you might have items in a storage space that you are paying for. Take a look at everything you have in your space and ask yourself if you really need them, or if you need that much space. Anything you do not plan on keeping you can either donate for a tax deduction or sell for some quick cash. It might turn out that you do not really even need the storage space, which frees up money as well.

Think about the cost of a new place

Are you thinking about moving out of your home into a less-expensive condo? If so, get the full picture, such as how much you have to pay in condo or HOA fees. Do some digging before you make a final decision about where to move to to see just how good the HOA's financial health is. There should be enough money saved to cover any emergencies that arise, and you should also see how good of a chance it is that fees will increase once you have moved in.

Retool your budget

No matter if you plan on staying in your current home or moving, it is best that you take a good, honest look at your budget to see if there are any changes that can be made. Get rid of unnecessary expenses, such as your gym membership and cable/magazine subscription, and reach out to your internet and phone service provider to see if there is any way you can get a less-expensive rate while enjoying the same or similar service as you have now.

Small changes are the way to go when it comes to avoiding or recovering from bankruptcy in California. Speak with a lawyer for more suggestions.