The classic wealth formula applies more than ever to you if you file bankruptcy. You don’t know what the wealth formula is? I am talking about the one that comics often spoof when making jokes about generating wealth. It is:
In order to take advantage of this concept you will have to change the thinking that got you to this point in your financial life. Baron Rothschild, back in the Renaissance, is reputed to have summarized it best saying, “buy when there is blood in the streets.” Do you see the buy low concept? During time of economic hardship, like now, is when you should be acquiring things.
I am not suggesting that you go out and obtain credit to borrow yourself into oblivion. A Cleveland newscaster on Black Friday announced that consumers should spend till they “melt their plastic.” She should be ashamed for even suggesting this. But the station’s customers are the very retailers paying for advertising who want you to spend recklessly. So how exactly do you buy low? You use your wealth. You are thinking, what wealth? I’m bankrupt.
Here is the other side of the wealth formula. If you buy when times are bad, you save and accumulate wealth when times are good. Baron Rothschild lived like a miser during good times. If you are working you need to save at least 10% of each paycheck. If you have the opportunity to work overtime, sock away the overtime money along with the base 10%. You filed bankruptcy. You don’t need to spend your money servicing debt anymore. It’s time to move beyond old ways of thinking. Build your financial reserves when times are good that way you can spend and acquire your fortune when times are hard for everyone else, when there is blood in the streets. The market will recover and that is when you sell the things you bought low for a handsome profit.
The saddest thing I see most of my clients do is to assume that overtime pay will last forever. Their financial house of cards becomes dependent upon infinite overtime. They need every penny of it, and then some to just keep the household going.
Imagine, you can be debt free, and build savings that you can use to acquire assets when prices drop during hard times. If there is one thing we all know for sure is that good times never last. Something always drives the economy down. Why not be ready for it next time? Live like a miser when times are good. Buy low and sell high.
Other attorneys playing the bankruptcy alphabet game:
- New York Bankruptcy Lawyer, Jay S. Fleischman says B is for Bank Account
- Omaha and Lincoln, Nebraska Bankruptcy Attorney, Ryan D. Caldwell claims B is for Business
- Northern California Bankruptcy Lawyer, Cathy Moran states B is for Business
- Los Angeles Bankruptcy Blog, Mark J. Markus writes B is for Business Bankruptcy
- Colorado Springs Bankruptcy Attorney Bob Doig argues B is for Bankruptcy Petition Preparers
- Newnan Georgia Bankruptcy Lawyer, Rick Palmer discusses B is for Business and Business Debt
- Philadelphia Bankruptcy Lawyer, Raymond Kempinski talks B is for Bank Account Levy
- Philadelphia Suburban Bankruptcy Lawyer, Chris Carr claims B is for Business and Individuals
- Taylor Michigan Bankruptcy Lawyer, Christopher McAvoy says B is for Bankruptcy
- Jacksonville Bankruptcy Attorney, Monica D. Shepard writes that B is for Bailout
- San Francisco Bankruptcy Attorney, Jeena Cho takes the position that B is for Borrow
- Ormond Beach Bankruptcy Attorney, Lewis Roberts states that B is for Bar Date
- Law Offices of Daniel J. Winter, Chicago Bankruptcy Attorney blogs that B is for Bank Account
- Miami Bankruptcy Attorney, Dorota Trzeciecka claims B is for Bad Faith Filing.
- Wisconsin Bankruptcy Lawyer, Bret Nason says B is for Bank Tips.
- Metro Richmond Consumer and Bankruptcy Attorney, Mitchell Goldstein reveals B is for Bankruptcy Estate.
- Chicago Bankruptcy Attorney, Kyle A. Lindsey covers B is for Bankruptcy Mill, a great read.
- Los Angeles Bankruptcy Law Monitor, Christine Wilton reveals a new perspective that B is for Bankruptcy Petition Preparer.
- Boo, Hiss, Honolulu Bankruptcy Attorney, Stuart Ing says B is for Best Interest of Creditors.
- Marin County Bankruptcy Attorney, Catherine Eranthe warns that B is for Beware of these Credit Card Offers.
- Pittsburgh Bankruptcy Attorney Shawn N. Wright writes B is for Bankruptcy Timeline.
- St. Louis, Missouri Bankruptcy Attorney, Nancy Martin thinks B is for Best Efforts Test.
- Vermont-New Hampshire Bankruptcy Lawyer, Michelle Kainen describes Benefits of Chapter 13.
- Birmingham Bankruptcy Attorney, Elizabeth Johnson tackles B is for Budget.
- Houston Bankruptcy Attorneys, Busby & Associates argues B is for Bad Credit.
- William Balena Westlake Bankruptcy decided B is for Bank Statement.