By a Senior New York Financial Expert The divorce process involves a financial separation as well as an emotional one. Which assets will you own following the divorce and which will be owned by your former spo...
Surviving Financially After a DivorceMay 31, 2017 - Financial Articles
Divorce prompts all sorts of life changes that you may not expect. Although any major life change, such as a divorce, can encourage you to start over and reassess your priorities, it is important to take into consideration other impacts it will have. One of the major impacts that divorce has over us is a financial one.
In general, a divorce impacts both parties financially, as the same collective income now has to support two separate households. After your divorce agreement has been settled, you may be asking yourself how you will survive financially after your divorce. Although your disposable allowance is highly likely to shrink post-divorce, there are 4 steps and life adjustments you can take to ensure you stay afloat financially.
4 TIPS TO SURVIVE FINANCIALLY AFTER DIVORCE
1. CREATE A BUDGET
If you haven’t previously had to budget your finances, now is the time to start. It is a vital way of making sure you are prioritizing your spending and that you aren’t caught out at the end of the month with a payment you cannot make. To do so you need to assess how much is spent each month on: rent/mortgage, utility bills, and other expenses that may not be monthly such as health insurance and education costs. Subtract these expenditures from the amount of income you receive each month in order to see how much is left over, or what you need to cut down on. You may need to reconsider how much you pay on rent or look at other utility companies and what their offers are. The important thing is to track your expenditure and make a plan.
2. LIVE WITHIN YOUR MEANS
The primary way of making sure you do not fall into financial difficulty following a divorce is by living within your means. It is simple: if you do not spend more than you earn, you will not go into debt. In order to live within your means you need to look at any spending habits you may have which you could cut out or substitute. For example:
- Make coffee at home instead of buying it at coffee shops.
- Look for offers in supermarkets and instead of doing large weekly shops, just buy what you need so nothing goes to waste.
- Don’t make any impulse buys – this way you can think about whether you really need it or not.
There are a lot of ways to reduce your spending, just make sure to be mindful when you make purchases and only make them if you can really afford to. Everyone deserves to be treated now and then, just don’t make it an everyday habit!
If you are able to, instead of spending money on non-necessities, save what you can. Even if this is only $10 a week, it will all add up and help to make sure you have finances to fall back on. This could range from placing spare change in a piggy bank to opening up a savings account. Just making sure you have funds in the event that an unexpected payment comes up is a good way to ensure you do not fall into any financial trouble.
Following a divorce, you may have items that you no longer want to hold onto and you could sell. For less valuable items, using an auction site such as eBay is great for decluttering but also making a little extra cash. However, for more valuable items your best option is to go to a specialist buyer. You may be looking to sell on jewelry from your previous marriage, such as the engagement ring. The best way to ensure a quick and safe selling process is to sell to a specialist, such as WP Diamonds.
At WP Diamonds, we have experts in the industry who can offer you a competitive price on your jewelry within 24 hours of receiving it. The process is quick, discreet and pain-free. Simply fill out our online form today for an offer, or make an appointment to visit one of our locations.