If you have recently been through a divorce, then it is quite normal to be worried about finances. Settling into a new life and taking care of the finances all by yourself is a hard process. In order to ensure a better future, you have to manage the finances in a right way. Now, making a financial plan and managing your finances is a process with lots of challenges. So, in order to help you to manage your finances, here are some of the essential tips for you.
#1: Create A Personal Financial Statement
This is one of the most important steps for you. A personal financial statement is one of the best ways by which you can analyze your income and expenses (monthly). After creating it you will able to know whether or not you earn enough to continue your previous lifestyle before the divorce. If not, then you need to figure out ways to trim the expenses. You have to start saving more for your secured future. So, set a goal to set aside some money for any emergencies.
Pro Tip: Watch this video to learn how to fill out a financial statement.
#2: Review The Status of the Divorce Settlement
It is also important to review the divorce settlement so that you can go ahead according to that. You have to also verify whether or not both the parties have completed their obligations. These can be refinancing the mortgage into the name of the person responsible and also removing the other’s name from important documents like credit cards, bank accounts, properties, insurance policies etc. This is important for getting financially organized and start a new life with new budget and goals.
Pro Tip: Use this alimony calculator to see how much you owe or are owed.
#3: Create a Budget
It is extremely important in order to track down your expenses. You know your income and according to that, you need to create a budget so that you can stick to it and strictly follow that. Write down all the important expenses like foods, petrol, electricity, rent (if you are renting) etc. Then if you have some extra expenses based on your luxury or entertainment you can see if you can afford them. Or else, it is necessary to cut off extra expenses at least for few months or so till you get financially stable.
Pro Tip: Download this free budget worksheet to help you get started.
#4: Simplify Your Payments
When you are adjusting to a new lifestyle it is often seen that people forget to pay their rents, electricity & phone bills etc. In order to manage these issues, simplify your payments. Many banks are there that offer online bill payment service and also you can choose automatic payment. Just you need to set the future payment dates online and your bank will pay your bills automatically.
So, these are the 4 main tips for you that you need to follow in order to manage your finance after getting divorced. It is understood that you are going through a tough time emotionally. But in order to have a secure and safe future without further problems, you have to follow all these steps. Plan and manage your finance today for a better and safer future ahead.