The 1 Mistake That Will Cost You Thousands

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Summary
In this episode of the Bankruptcy to Bliss podcast, host Louisa Larado discusses the critical mistakes made post-bankruptcy and emphasizes the importance of having a structured plan for financial recovery. She shares her personal journey of overcoming financial struggles, highlighting the significance of mindset and emotional strategies in rebuilding one's financial life. Louisa encourages listeners to take actionable steps towards recovery and invites them to join her upcoming workshop for a comprehensive roadmap to financial success.

Takeaways

• The biggest mistake post-bankruptcy is not having a plan.
• Feeling paralyzed after bankruptcy is common but can be overcome.
• Money management requires both practical and emotional strategies.
• Mindset plays a crucial role in financial recovery.
• Setting small, achievable goals builds confidence.
• Education and mentorship are key to financial success.
• A holistic approach to recovery includes emotional well-being.
• Celebrating small wins is important for motivation.
• Taking action today can change your financial future.

Keywords
bankruptcy recovery, financial planning, mindset, personal finance, budgeting, emotional strategies, financial education, workshops, money management, overcoming financial setbacks

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Disclaimer: The information contained on today’s podcast has been provided as general advice only. The contents have been prepared without taking into account your objectives, financial situation or individual needs. Before making any decision regarding the information, strategies or products mentioned on today’s episode, please consult your own financial advisor or other professional first.

Chapters

• 0:00 The Importance of Having a Plan
• 6:14 Mindset Matters in Financial Recovery
• 10:43 Building a Holistic Recovery Plan
• 12:41 Empowering Others Through Shared Experiences

Transcript

Hi and welcome to the Bankruptcy to Bliss podcast. I'm your host, Louise Larado. And today I want to talk about the biggest mistake that I made and I see so many people making post -bankruptcy that can cost you thousands. So stay tuned for that.

Thanks so much for joining me today. And I'm so excited because in just a couple of days I'll be holding my workshop Bankrupt and

broke now what which is going to give you the road map to get yourself back on track after bankruptcy because quite often after such a big financial setback such as bankruptcy it's such an overwhelming time and it's a stressful time and you don't really know what the next right step should be you sort of just need that time to chill and to try and forget about everything and as a result you sort of stay stuck

So I wanted to create this event. It's a live virtual event that you can watch anywhere you are in the world. And if you can't make it live, you get the replay. But I wanted to create something that people could access to give you the exact steps and tools and frameworks that are going to help fast track your recovery. So if you'd like to join us at this workshop, you can just go to louisalorato .com slash register, and you can find out all the details and save your spot.

I'm really passionate and excited about this because as you may know, if you've heard my podcast before, I love helping people get back on track after their bankruptcy. And we're going to be covering so much exciting stuff in the workshop. So I wanted to give you a few little previews of what some of the content will be that we're covering. And today I wanted to talk to you about the biggest mistake I made.

And I see so many people doing that. And that mistake is actually not having a plan in place to get yourself back on track. And when I went bankrupt, for about the first year or so, I sort of felt paralyzed by what had happened. And I was in a much better space when we filed our bankruptcy because it was like this.

big massive weight had been lifted off our shoulders. We got to wipe out all our debt, all those things that were causing a lot of stress and worry in our lives just sort of went away. But I just didn't really want to think about money after that. I figured out it sort of sorted itself out. So I don't want to have to keep thinking about it. So as a result, I didn't make a plan of how we were actually going to get back on track. How were we going to rebuild our money up again?

How are we gonna start? The idea of even savings was such a massive foreign concept at the time because it was just trying to get through the week. All I was focused on is, well, let's try and have enough money to pay all our expenses, have groceries, fuel for, know, pay for the kids to do their activities and hope that there might be some leftover. That was all I could think about. I didn't wanna

set any goals. I didn't want to even consider that we, could maybe save a house deposit, which eventually we did do. But those weren't on my radar for at least the first year after we fired our bankruptcy because money was hard. Money was a struggle. Money was this thing that didn't serve us anymore. And it was just a resource I used to try and get through each week. And

what I found was happening was that each week, because I was sort of ignoring it and not putting any weight on how we were gonna get through it, every single week, didn't matter how much we earn. And at the time, my husband was still earning really good money. Now we had to pay contributions back to our trustee towards our bankruptcy. But aside from that, we still should have been in a position where we,

could be saving up some money. We should have excess. We should have enough to put towards different things. And that just wasn't happening. What I actually found instead was happening was each week we would pretty much be down to zero. Or if we had managed to put some aside for savings, then we'd have to go into those savings constantly. So it was just like this cycle of staying stuck and

This is what I see so many other people do because we don't really want to think about our money or money. Yeah, money just doesn't feel good to us. Money feels like a struggle. Money feels like this thing that has hurt us. Basically, we're sort of scarred by our money because it's this big case of worry or it makes you feel really over cautious. So you're worried about every little set going that's going out.

And that is not what it should be. So what I realized eventually after making this mistake for a while and just thinking, why are we not getting ahead Why? Despite all the money that we're making and we were actually really fortunate because...

We'd moved to a mining town at the time, so that provided us company housing. So we didn't even have to think about rent. So realistically, we should be able to have excess money. And what I started doing at first was thinking of some strategies that we could start doing to maybe invest our money or set up a better budget. So I started dabbling in a few different areas, which started to make some differences, but it wasn't.

until I set a clear plan of how we were going to get through this, that things really started to change. And it wasn't just a simple strategic plan either. It wasn't just thinking, okay, well, this is how I'm going to budget, or this is how I'm going to manage my accounts, or this is how we're going to invest or save. It wasn't just that. It was a holistic plan that involved, okay, well, how am I going to

work on my mindset? How am I going to work on all these different emotional areas that bankruptcy has affected, like my confidence with money, my feelings about it, the way that my family now feels about money, the example that I've given to my kids about money, that it's this bad thing that's case of stress and we can't ever afford the things that they want. How am I going to change that?

So it wasn't just the practical strategies that I needed to put in this plan of recovery, it was the emotional strategies. So was the holistic approach. And then once I had figured out a plan and I figured this out from multiple sources. So, you know, I got some great strategies from various places. My first starting point, if you haven't read it, the Barefoot Investor, that was like a turning point in terms of my money managing strategies.

So, you know, educating myself, then I did a couple of online courses on ways to generate more money. So I learned about share trading. did some other courses in different ways to create additional income. So I did the practical stuff, but then I also started educating myself on my mindset on the habits that successful people have of

how I can rebuild my confidence and feel good about my money again. So it wasn't just one thing. And most people that I find, if they do set a plan for themselves, is they focus on the practical stuff. Because that's easy, that's obvious. For a lot of people, the mindset stuff is a bit woo -woo, it's a bit crazy,

It sounds like these things that maybe other people do but doesn't feel right for them. But what I found by studying a lot of successful people, reading a of books from those people that were achieving amazing things financially was mindset. Mindset is everything.

If you look at any successful person, know, look at Warren Buffett, look at Oprah, look at all these people who are in this, these really highly regarded, those people that are featured in Forbes magazine as the top most successful people. they all will tell you that their mindset is the key. Having that strong mindset.

So, once I realized this, and I also enrolled in some online courses to do with my money mindset, and I got some mentors that could help guide me that were in a really great financial place, the place that I wanted to be, and I learned their steps, and I learned through their teachings of, okay, well, these are the things that you need to do. once I put all of these things together, the practical,

and the mindset stuff. And I started setting some goals. you know, having these achievable goals there and they started off really small. And then you reach those goals and then you're like, okay, well, I've done it. So you get that confidence to set a bit of a broader goal. And then you take the next step and then, you you the next big goal soon, bigger and bigger. And by the end of our bankruptcy period, so in Australia, it's a three year period, we had

a growing savings account. think once we were discharged from our bankruptcy, I think we had over $50 ,000 in a savings account. We'd taken our family on a couple of overseas holidays during our bankruptcy that we'd had enough money to pay for. We had some money invested in shares and then this continued to grow. So a couple of years after our bankruptcy, we'd managed to save up over $100 ,000 for a house deposit. And at the time,

at beginning of our bankruptcy or even at the end, even after the three years of our bankruptcy period and when we had that money in account, I still didn't even think at that time because it was like these little steps you had to take that we'd be able to ever buy our own house. That concept was like, no, we've been bankrupt, we'll be blacklisted forever, we'll never get our own house. But I had to continue to work on my mindset and a couple of years later, we easily got a loan.

to buy our own house with this great deposit that we'd managed to save. And none of that would have happened without a plan, without a clear plan of how we are going to get through this. Now I had to learn my plan from multiple sources. Like I said, I had to make a lot of mistakes. I had to invest in a lot of different coaches and courses to...

tailor make a plan for recovering from my bankruptcy. Because at the time, I hadn't discovered anyone who had been through a bankruptcy and could teach you from that perspective, how to fast track your recovery. And that's basically why I wanted to do the same now for other people. Now I've learned all this and I can use these tools to help those that are in the exact same position that I was.

a few years ago where I felt paralyzed and I just didn't know what the next right step is. Because it's such an overwhelming time. Going bankrupt is such a massive decision. It might be one of the biggest decisions you have to make in your life. It's not one that's taken lightly. And that period, I still remember it so clearly, that feeling leading up to our bankruptcy before we'd made that decision.

of the most stress and worry and just, not being able to afford groceries for my family. That was the turning point in my life that I thought my life would never get to that. So it's understandable that you are not going to be feeling great about your money even after your bankruptcy, even if you're discharged, if you haven't done any work on your mindset and you haven't got a clear

plan on the strategies and steps and tools that you need to have in place. So like I was saying, I want to give you those same strategies. So hopefully through listening to some of my podcast episodes, you'll start to gain some insights in some of the tools and strategies that you can use. But if you want to take that step even further, then I suggest you come over to my workshop that's happening in a couple of days.

where I'm going to give you a plan. I'm gonna give you the roadmap to fast track that recovery. I'm gonna tell you the exact things you need to do in the exact order you need to do them so you don't have to go through trial and error and trying to figure out all this stuff for yourself and realizing what doesn't work. Because most people like I say, start with the practical strategies, because

It's easy for our mind to get around because it doesn't seem as hard as looking at ourself. When you look at your mindset, that's the tricky part, which is why most people miss it because it's really hard to reflect and look at yourself and see where you're lacking and what might have caused those things. can bring up some stuff, but it's so necessary. It's so vital because if you don't do that stuff,

You're really gonna just keep staying on that hamster wheel of not getting ahead, just like I found ourselves were doing. So in my workshop, in a couple of days, I'm gonna be giving you the exact steps, the strategies, the order that you need to take them in, and I'll be giving you some tools that you can use for each of those areas to start fast tracking your success. And if you do all the things that I share in my workshop,

I can guarantee you'll start seeing some positive results within a couple of weeks. Now, you won't be making millions of dollars in a couple of weeks, but you'll definitely start to see changes in your finance and your habits that you'll start creating that are going, guarantee if you do them, it's gonna make a difference. It's gonna make a change. If you are currently living week to week where you run out of money all the time or...

if you have your expenses are more than what you're bringing in currently or if you're just feeling so worried about your money or stressed all the time about your money and you don't know how to change that then this is going to be a game changer for you. So I suggest if you haven't you can head over to my website or click the link in the show notes so it's louisalorado .com forward slash register

or you can just find the link in the show notes below. And just read a bit more about what's happening during the workshop to find out if it is the right fit for you. And if it is not, then I suggest going back over some of my previous podcast episodes and start getting some insights into the tools that I share. Start taking some action today or start creating your own plan now. So how are you going to start working on your mindset? What tools

What strategies are you gonna put in place to maybe have a better budget that's flexible and suits your own needs? How are you going to start generating additional income or creating more income so that you can get ahead faster? What goals are you gonna be setting for yourself? And how are you going to be celebrating all your little wins and successes that you make along the way? Now these are all key components that you will need in your plan to

get successful.

So I hope that this helps. I hope that you can see what you need to start doing right now, starting from today, don't put it off, another minute. Start today to start looking at these areas and figure out how you can start creating your own plan or register for my workshop so you can join in at the fun and we can do it together and I can be there to help and guide you and answer your questions.

and tailor a little bit more specific to your own individual needs. Now, I hope you've enjoyed today's episode. I hope I'll see you at the workshop. If not, then I'll catch you on the next episode. And if you're enjoying this content that I'm putting out, please don't forget to rate or review this podcast.

And if you'd like a bit more guidance and support, can also head over and join my Bankruptcy Bliss free Facebook group where I can offer you a bit more guidance and support as well as some content to help get you to that next level. Thanks for listening and I'll see you on the next episode or at the workshop if you're joining me.