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How To Take Control Of Your Finances After DivorceMay 16, 2017 - Financial Articles
Finding economic stability after your divorce can be a challenging endeavor. Expenses like attorney’s fees, court fees, the splitting of assets, etc. may have added up during the divorce process and you may be unsure of your financial situation. We take a close look at how to take control of your personal finances after divorce.
With proper planning, you can rebuild your finances and plan for the future. Even if you’ve struggled financial issues in the past, your new life post-divorce can be a great time to take control of your expenses and start a new financial life.
How to take control of your finances after divorce
There are four steps that will help you take control of your finances and accomplish your financial goals.
1. Assess Your Situation
Take a good, hard look at your finances: as painful as it may be, it is important to acknowledge where you are financially after your divorce. Factor in any divorce expenses and determine how much money you have right now. Factor in alimony and any regular income and determine how much money you expect to receive every month.
You may feel overwhelmed, confused or even that your financial situation is spiraling. The best way to regain control of your finances during or after a divorce is to begin to make sense of it.
Look at your:
- Savings account and any other bank accounts
- Child support costs
- Credit card debt
- Credit score
2. Set Goals
In order to guide your financial planning, it is important to set goals for the future. For some, your goal may just be to break even every month. For others, there may be debt that needs to be paid or future expenses such as graduate school or children’s education that need to be saved for. Based on your specific situation, determine what financial goals you have.
Once you have set your goals, it is time to budget. Record how much money you spend daily, weekly, and monthly to get a sense of your regular expenses. Create a realistic budget based on your expenses. If your expenses exceed your income, look at where you can cut back.
Though it may be difficult, limiting optional spending may be necessary for the time being. If you have any long-term financial goals, be sure your budget will allow you to save enough money each month to reach these goals in a timely manner. Again, if your budget will not allow you to save money, it may be time to cut back on discretionary spending.
4. Seek Advice
If you feel that you are unable to navigate this on your own, do not be afraid to reach out to family, friends or even financial planners. Having a support network around you that can provide guidance, education and advice can make a real difference. You may only need help during the initial stages of your life during or after divorce.
How to earn extra money after divorce
Even after creating and adhering to your budget, you may still be in need of extra money. After a few months, you may find that your income simply is not be able to cover your necessary monthly expenses, or you may have large expenses in the future that you are having difficulty saving up for. In these cases, it can be important to start looking for ways to earn extra money. Below are some common ways to earn extra money post-divorce:
Large sums of money you may have received from your divorce are important to invest rather than spend right away. Making good investments is one of the easiest ways to earn money and grow your savings.
2. Sell Your Engagement Ring
If you are in need of money to cover your expenses, one way to raise cash in as little as 24 hours is to sell your engagement ring. Many women find that parting with their engagement ring can not only provide much-needed money, but can be a cathartic way to move on from the relationship.
WP Diamonds offers an easy, secure service for selling your engagement ring online. Back by over 1,000 customer reviews and an A+ BBB rating, our reputable service is fast, easy and professional.
How it works: Fill out the online form and a diamond specialist, who is experienced working with those going through a divorce, will be in touch shortly with your initial price quote. There are no fees or commissions deducted from your final offer. We buy your items directly meaning that the entire selling process can take as little as 24 hours from start to finish.
3. Sell Other Unwanted Items
Selling luxury items such as designer watches or bags can be another way to earn extra money. Any unwanted items, especially those that remind you of the past or are no longer reflective of who you now are, are just holding you back. Now is a good time to part ways with their pieces and make some money in the process.
Flourishing after divorce
Though it can be daunting, becoming financially independent is a positive step. Navigating the waters of financial independence may be difficult at first, especially when life can be so new and uncertain post-divorce, but it can be empowering to be in the driver seat of your finances.
Just remember that with the right attitude and dedication, you can accomplish all of your financial goals. Take this new stage in your life as the opportunity to start over and create a brighter future for yourself.