When you go through a divorce, every aspect of your life is thrown into a tailspin. This includes your finances. You have to make sure that you are ready to deal with the financial upheaval.
One thing that is abundantly clear is that you can’t just fly by the seat of your pants when you are trying to recover financially. Consider these tips to help you get started.
What kinds of things do I need to plan for?
Ideally, you will write out a detailed plan for your life. This is something that you can do by category so that it doesn’t seem too over overwhelming. Write out your plans and start doing this today. Include not only the financial aspects of your plan, but also the emotional and practical aspects of the plan.
Should I plan for necessities or everything?
You should certainly plan for the necessities of life since you will exist on your income. This includes paying your housing costs, building a new nest egg and other expenses that you know you will incur. You shouldn’t stop there. Try to plan for other things, such as a vacation that you want to take or new furniture that you want to buy. Having plans for fun goals can help you stay on track with not-so-fun goals.
How should I handle savings and investments?
If possible, set up your savings to transfer to the account automatically. This hands-off approach might help you to save more than what you would if you had to think about the savings. The same goes for retirements and investments.
Ultimately, you have to take care of yourself when your marriage ends. This means that you need to put aside the factors that you can’t control and focus on what you can control. Make your plans and move forward with creating your new life.
Source: CNN, “10 Steps to Financial Recovery After a Divorce,” Joe O’Boyle, accessed July 06, 2017