Even if divorce is the best solution for a couple’s future, both parties will typically experience some emotional and financial turmoil. The prospect of dividing one household into two independent futures can lead to countless sleepless nights, stress over bills and anxiety over financial peril. When the divorce is finalized, one of the first things an individual must do is craft a strong, effective budget to protect their financial future.
Here are some tips the newly-divorced can follow that might guide them through creating a budget that accounts for their new financial situation.
- Categorize your expenses: It is important to build the budget based on the types of expenses you will see each month. By allocating money for essential expenses such as loans, utilities or groceries you can truly mark money for discretionary spending.
- Account for non-income money: Whether you generate money from a hobby, sell items on a digital storefront or have other sources of income apart from your job, it is helpful to account for that money – even if the plan is to simply stash it away in savings. Additionally, when crafting the budget, make sure to use your take-home pay rather than the overall annual salary.
- Talk to an expert: Financial advice is easy to come by. It might be wise to discuss your unique situation with a financial professional, however, who can provide thoughtful, uniquely-tailored guidance.
- Stick to the budget: While this isn’t advice about creating the budget per se, it is essential that individuals build a strong budget and stick to it. Too often, individuals will take the time to build a solid budget and then let the excitement fade away after a couple months.
The divorce process can be challenging no matter the circumstances of the marriage. Whether the marriage lasted for years or decades, whether the couple amassed millions in assets or thousands in debt. Regardless of the situation, it is wise to seek the guidance of an experienced legal professional who can provide the answers and representation you need from start to finish.