Achieving Financial Independence After Divorce

Many divorced couples are learning how to be independent after divorce. One topic of focus is financial independence.

After a divorce, finances become a huge concern. Two incomes turn into one. While you may receive alimony or child support, it’s primarily up to you to earn income to pay your bills. This can be a scary thought. So how do you do it? Here are some steps to help you take control of your finances after divorce.

Know What You Own

In your marriage, you might have been the one to take care of the finances. Maybe you checked all the accounts regularly, paid bills, and tracked income and expenses. If so, that’s a great foundation to improve upon. Now that you’re single, it’s just you, so things may be somewhat easier.  Try to look for ways to streamline things. Perhaps using a spreadsheet or app can help.

Think About Your Dreams

You need to set goals; otherwise, you won’t have any motivation to save your money. It will likely take a lot of money to fulfill your dreams, so start planning now. Your ex-spouse’s dreams no longer apply, so think about what you really want to do with your life. Do you want to retire early? Go back to school? Live by the beach? Whatever it is, find out  what you need to do to get there.

Update Your Budget Regularly

You may need to update your budget as life changes so you’re not hit with unexpected expenses that you can’t afford. For example, if you have kids, you may need to save up for big-ticket items such as braces or college. If you own a home, you’ll need to budget for a mortgage, repairs, maintenance, and homeowner’s insurance. If you own a vehicle, factor in payments, auto insurance, registration, maintenance, and repairs. Don’t forget to save for retirement.

Stay on Track

Whatever your plan is, find ways to stay on track. Make sure bills are paid on time by using automatic payments. Use QuickBooks or some other accounting software to keep track of income and expenses. This can help you see where your money is going, which can help with budgeting. There are many apps that can help you save money as well.

If you need a little help, consider a financial adviser. They can advise you of the steps you need to take and can help you make your dreams a reality, even if they may seem unattainable. Ask friends and family members for referrals.

Seek Legal Help

Getting control of your money is something you need to do if you want to achieve financial independence after divorce. While it can be difficult, it’s not impossible.

Get help with financial issues with help from Fort Lauderdale divorce attorney Edward J. Jennings, P.A. He has resources that can help you rebuild credit, create a budget, and meet your financial goals. To schedule a consultation, call 954-764-4330 or fill out the online form.

Resource:

kiplinger.com/personal-finance/603064/good-news-for-the-newly-divorced-4-ways-to-achieve-financial-independence