Once you finally commit to the decision that you are getting a divorce, you are in for one serious rollercoaster. The financial ups and downs that occur during the divorce process are very unexpected and can be quite costly. It is not just the lawyers and court hearings that may be pricey alone. The additional reclamations that may occur from your significant other can sure cause one financial headache.
It is a good idea to plan for your financial future amid a divorce. Here are some good ideas and tips to keep in mind in order to keep you one step ahead.
Spend Less Than You Make
This may come off as a very simple idea on paper. If you make $4,000 a week, do not go out and spend $4,500 on a weekend, easy enough right? However, in our fast-paced consumer-oriented culture impulse buying is a common problem. For some of us, it is used as a method of self-healing.
When making large purchases in comparison to your earnings do not make these buying decisions on impulse. Wait for 24 to 48 hours to verify if you actually need this item or items. There is no need to dig yourself into debt that will further cause you stress in the long run.
Plan your unexpected and fixed expenses
One of the worst feelings in the world is when you see those flashing lights and hear the sirens behind you knowing five minutes from now you will be getting a ticket. Things such as speeding tickets, flat tires, having to go to the doctor or other random unexpected expenses can really throw off your budget. Although you never truly know when one of these expenses will occur it is good to plan for them. Having a cushion in your budget for these expenses help with your overall financial stability.
Also, it is good to think of general annual expenses that may not incur every month. Do not forget about things like homeowners insurance and other annual expenses so they don’t hit you in the face when they finally do arrive in the mail.
Have an automatic savings system
Try and have a savings system put into place that automatically takes a cut out of your paycheck each month. Save for short-term needs such as unexpected expenses. Also, save for long-term such as your retirement account.
This way you will not see the money and will not think of it as earnings you are depending on.
One of the hardest things is sitting down and thinking about your finances. It is a very stressful subject to think about especially when going through a divorce. We often get stuck thinking about the negative aspects as opposed to how we can move forward.
Stay goal oriented and focused. Have a savings plan put into place or monetary goals that you are able to monitor; this may include paying off your mortgage or putting $5,000 towards your child’s college fund.
The final tip we have for you is to simply be proactive. Like anything in life if you are not actively working towards something you are stagnant. With everyone else moving forward in the world, this equates to you essentially moving backward.
Your finances are just the same. Do not expect that if you have a financial advisor all your financial issues will simply be solved. You have to continually be working, monitoring and researching them ever so slightly to keep moving forward.
The first step is always having an interest. So thank you for taking an initial interest in how you can better your finances while going through a divorce. Continue to be proactive and don’t forget to keep saving.
To get help with your divorce contact the Law Offices of Matthew M. Kremer, San Diego divorce lawyer.