As you go through divorce, you realize that your financial situation is taking many twists and turns. For example, you’ll no longer have two salaries to rely on, so it’s critical to adjust your spending.
Here are five tips you can follow to create a post-divorce budget:
- List your future income and expenses: Forget about how much your family was earning and spending in the past. Post-divorce, it’s all about your income and expenses.
- Track your spending: It’s a must to understand exactly where your money is going, as this allows you to cut back in the appropriate ways.
- Put pen to paper: A budget in your head isn’t a budget at all. Use pen and paper or a spreadsheet on your computer to create a budget and track your income and expenses. This is the best way to organize your budget, which helps prevent mistakes.
- Review it once a month: Don’t assume that the first budget you create post-divorce is the one you’ll follow forever. Review it regularly — at least once a month — to determine if changes are necessary.
- Don’t forget to save: Don’t focus so much time on your income and expenses that you overlook the importance of saving. Get into the habit of paying yourself first.
It’s challenging to adjust your finances post-divorce, but following these steps will help you create a budget you can trust.
The steps you take during the divorce process, such as those associated with property and debt division, will affect your finances in the future. Be sure to make decisions that will position you for future success.