How to Afford What You’ve Always Wanted: A Creditor’s Perspective
For over 25 years, I worked as a debtor’s attorney, filing more than 4,000 Chapter 7 and Chapter 13 bankruptcy cases. Now, I represent creditors, helping them recover what they’re owed under Texas law. Achieving financial stability and affording the things you’ve always wanted isn’t just about avoiding debt—it’s about creating a solid plan that respects financial obligations and helps you build toward your goals.
Pay Yourself First
Whether you’re saving for a dream car, a new home, or a luxurious vacation, the best way to achieve your financial goals is by treating yourself like a creditor.
- Set Aside Payments: Create a separate savings account and deposit monthly payments into it, just as if you were paying off a loan.
- Stay Disciplined: Avoid using those funds for everyday purchases.
- Reduce Interest Costs: By saving for a substantial down payment, you’ll lower the amount you need to finance, saving on interest.
This strategy not only keeps you from going into unnecessary debt but also helps you stay in control of your financial situation.
The Importance of Hard Work
Truth: Financial success comes from consistent effort. Whether you’re working to pay off debt, save for a major purchase, or achieve financial independence, hard work is key.
Even the wealthiest individuals started from somewhere. They worked hard, made sacrifices, and prioritized their goals. For creditors, understanding the debtor’s financial priorities can also help in negotiating repayment plans that balance responsibility with realistic outcomes.
Set Your Priorities
To afford what you truly want, you must first figure out what matters most to you.
- Do you value material possessions like cars, homes, or the latest tech?
- Would you rather focus on experiences, like travel or personal development?
Once you’ve defined your priorities, it becomes easier to make financial decisions. For creditors, this principle applies when determining the best repayment strategies to recover debts while respecting the debtor’s circumstances.
Practice Financial Discipline
Self-control is critical when working toward financial goals.
- Delay Gratification: Before making a purchase, give yourself a few days to consider whether it’s necessary or if it aligns with your long-term priorities.
- Avoid Impulse Spending: Sacrifice on-the-whim purchases for meaningful, lasting investments.
- Save for Emergencies: Build an emergency fund to avoid financial pitfalls that can derail your plans.
This disciplined approach also benefits creditors, as debtors who practice better financial habits are more likely to meet their repayment obligations.
Balancing Wants and Responsibilities
The simplest way to afford everything you want is to save, work hard, and prioritize your goals. However, for creditors seeking to recover debts, understanding these principles can also help create solutions that ensure financial obligations are met while promoting responsibility.
By balancing financial goals with disciplined spending and saving habits, both creditors and debtors can achieve long-term stability and success.
