Saturday, December 13, 2014, AM | 1 Comment
When you think about divorce, you probably envision the process of sorting out who gets what, as well as the emotional despair and confusion that comes along with it. Rarely do people ever think about how they’ll budget their money just after a divorce.
A person’s finances can change dramatically once a divorce finalizes, and it’s imperative that they’re as prepared as possible for it.
This is your guide to budgeting your money after the dust from your divorce has settled.
Take a Look at Your Income
Before you form your budget for yourself, it’s extremely important that you outline each source of income that you have. Be sure to include your primary occupation income, any government benefits, or side job income. The idea is to get a realistic figure of what you have to financially work with.
Examine Your Expenses
You’re not going to only be examining your expenses to get an idea of where your money is going, but you’ll also be modifying and terminating some of them to accommodate your new life. Start by creating a list of fixed expenses such as car payments, utility bills, insurance payments, cell phone bills, etc.
Next, detail your fluctuating expenses in a separate space. Fluctuating expenses are essentially activities or services that aren’t essential for survival. Eating out or going to the movies are great examples of fluctuating expenses.
You might also consider depending on the shape of your personal finances of hiring a professional consultant like those from WBLI Incorporated to help you budget your money during this hard time of your life.
Compare your income to your expenses and begin eliminating what you don’t need or won’t be able to afford. These changes don’t exactly have to be permanent, but they’ll get you on your feet initially.
Get Rid of Unessential Possessions
Once you’re divorced, there will likely be things you just won’t need anymore. For example, a family van or high speed internet service designed for multiple users both will become useless. Get rid of the things that just won’t be practical after the divorce.
Get a Second Job Initially
Lastly, don’t shy away from getting a second job at first. Of course, you won’t have to stick with it for years on end, but it will help you take on unexpected expenses in the beginning.
It might even help you build up a financial safety net that you can use later in life should you ever fall ill and become unable to work for a time.
Don’t let your divorce become more stressful than it has to be. Budget your money effectively and keep a plan in place so that your finances don’t take such a hit after the divorce.Facebook.com/doable.finance