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Financial Advice

 



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Depending on the duration of your stay in incarceration, your financial situation may be in dire condition. It could be that your earned some money while you were incarcerated, or you could be handed a check upon release, either way this will hardly be sufficient to get you back onto your feet financially. For example in Texas you will leave custody with a $100 check and whatever you had in your prison account. With this you will, more than likely, have to purchase a bus ticket to your destination for the night. This could be a halfway house, or back to the address you are going to be staying at. Remember too that you need to eat! $100 does not go far these days.

Below are some suggestions for helping you to get back on a financially sound footing.

Credit Score

Your credit rating may prevent you from getting a car loan, mortgage, credit card and even being able to rent a place to live.

It is important to check your credit score regularly. Credit scores go up and down. Essentially the higher your credit score, the better your chance of obtaining credit is.

A good resource for checking your credit score is CreditKarma.

Checking your score on CreditKarma is free and checking your credit will not effect your credit score. And, "Yes", credit scores can go down based on the number of credit checks being made.

Bank Accounts

Having a bank account is a must. If you don't already have a bank account you will need to open one. Look for a bank (or credit union) that is FDIC insured.

Financial institutions are likely to require some form of identification when opening an account.

Remember that your driver's licence may no longer be valid!

Choosing a financial institute is a personal choice, but don't overlook Federal Credit Unions. These can offer better interest rates and are just as accepted by the industry as the better known banks.

Whatever financial institute you select they are going to prefer that you have a form of income before they offer some services (overdraft facilities etc.).

Get Gainfully Employed

This may sound obvious but, it may be harder than it sounds. With a criminal record the odds are stacked against you, however, there are some employers who will give you a chance. Don't expect to totally shut-out because of your time. Be honest when applying for a job.

The last thing you want, or need, to do is doing anything that will result in a return to prison.

Here is a link that contains the details of some employers who are willing to give you a second chance.

As an alternative to seeking employment you may want to setup your own business. A useful link for this can be found from the top menu under "Business, Employment & Financial". Elijah Dawson has written several article that are available to print off for free to assist you in establishing your own business venture.

Whether you decide to start up your own business or seek employment the important thing is to get some legal money coming in.

Do Avail Yourself Of Benefits

Until you get a job investigate what benefits are available to you. Health coverage and food aid are usually available. There are charities who can help too with other expenses and resources. These is very likely a local Goodwill Industries which can help with things like computer access, travel cards etc.

Don't forget local churches may be able to offer you some aid. Just be polite and don't look like you are a drunk or a drug addict. Churches have been known to run food pantries and other charitable services.

Don't be too proud to ask for help!

Budgeting Wisely

It is important to establish a budget. This should include things like; bills, gas, food, rent/mortgage etc.

You should always include putting something away for savings. The basic rule of thumb is try and save enough money to keep you able to go at least 3 months (or pay cycles) without income. It is recommended that you set up a savings account at a financial institution with the best interest rate. This may or not be the same one as your checking account. Shop around for the best rates.

You should also try and put some money away for unexpected expenses, like car repairs, tax bills etc. they will come up, so it is best to be prepared. Obviously, initially this will require patience and frugality whilst you build up a nest egg, but it is essential to stay the course and stick to your budget.

Avoid Extravagance

We all like to treat ourselves from time to time, but try not to build up any debt. The irony is that in order to build credit you need to have credit. What that doesn't mean is that you have to max out credit cards buying stuff you don't really need. Shop around for the best deals, buy stuff in sales.

Get Life Insurance



At Felon Helper, we're dedicated to supporting previously incarcerated individuals navigate this journey. For more information and resources, visit felonhelper.com.

Please consult a licensed attorney for legal advice.