Undergoing divorce can be a life changing experience. From your friendships to your finances and lifestyle, everything gets affected by divorce. Obviously you are also left to deal with the fact that half of the normal monthly income is gone while debt and potential credit destruction loom in the background.
But it doesn't have to cause so much ruin. Just because you faced a divorce doesn't mean your finances spiral out of your control. You can re-evaluate your personal financial management now, with the help of a few tips and the right software, so you can maintain financial stability.
How Divorce Affects Your Finances- And How to Deal With it
These days most marriages survive on two incomes. And if one spouse is in charge of staying home and caring for the house, the other spouse's income is generally large enough to compensate for the split in responsibilities. When you get divorced however, everything changes. You will be faced with outcomes like having to deal with responsibilities and single income. You will need to go get a job even if you were caring for the home before. And if you were previously responsible for paying all the bills, you may now need to cut back on your work hours in order to care for the house and children.
If you wish to really adjust to this situation you need to begin creating a new budget.
Make a list of alimony, child support or any other income.
Create a list of expenses, including alimony and child support if you are ordered to pay it each month. Add any monthly payments as well from mortgages to utilities, car loans and medical expenses.
Compare your income and expenses. Figure out if there are some items that can be eliminated. For example you can get a car with smaller payment. You might need to move to a smaller home or rent instead of owning. See if there are any subscriptions that you can do without.
Think about what your needs and wants are. Need and want is different. Shelter, food, medical care, and child care are needs. You can't live without these things. Make it a priority to afford the needs first.
Don't rack up new debt right now. You might end up destroying your personal financial management with a new credit card payment or car loan. It paints a very gloomy picture of your financial future and should be avoided at all cost until you are back on your feet after the divorce.
Remember, these changes don't have to be permanent. Once the dust settles you will be able to get back on your feet. The best thing to do is track expenditure and savings with your personal financial management budget online software.
But it doesn't have to cause so much ruin. Just because you faced a divorce doesn't mean your finances spiral out of your control. You can re-evaluate your personal financial management now, with the help of a few tips and the right software, so you can maintain financial stability.
How Divorce Affects Your Finances- And How to Deal With it
These days most marriages survive on two incomes. And if one spouse is in charge of staying home and caring for the house, the other spouse's income is generally large enough to compensate for the split in responsibilities. When you get divorced however, everything changes. You will be faced with outcomes like having to deal with responsibilities and single income. You will need to go get a job even if you were caring for the home before. And if you were previously responsible for paying all the bills, you may now need to cut back on your work hours in order to care for the house and children.
If you wish to really adjust to this situation you need to begin creating a new budget.
Make a list of alimony, child support or any other income.
Create a list of expenses, including alimony and child support if you are ordered to pay it each month. Add any monthly payments as well from mortgages to utilities, car loans and medical expenses.
Compare your income and expenses. Figure out if there are some items that can be eliminated. For example you can get a car with smaller payment. You might need to move to a smaller home or rent instead of owning. See if there are any subscriptions that you can do without.
Think about what your needs and wants are. Need and want is different. Shelter, food, medical care, and child care are needs. You can't live without these things. Make it a priority to afford the needs first.
Don't rack up new debt right now. You might end up destroying your personal financial management with a new credit card payment or car loan. It paints a very gloomy picture of your financial future and should be avoided at all cost until you are back on your feet after the divorce.
Remember, these changes don't have to be permanent. Once the dust settles you will be able to get back on your feet. The best thing to do is track expenditure and savings with your personal financial management budget online software.
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PocketSmith believes that personal finance software should be easy to use. Gain access to the money management software tools you need for informed financial decisions.
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