How to Financially Recover After Divorce
A divorce can be one of the most mentally, emotionally, and physically distressing things any woman ever has to endure. It can also be very financially draining, unless you happen to be making six or seven figures annually. However, if you are like most ladies, you probably do not make nearly that much money in a year. Luckily there are some great tips that can help you financially recover after divorce. Although it may take some time to fully recover, the following things can certainly help speed up the process.
1. Analyze Your Complete Financial Situation
One of the first things you should do after divorce is sit down and take a good look at your complete financial situation. Make a list of all your sources of income and another list of all your monthly expenses. Remember to include any child support or alimony payments in either the income or expense category. When you have everything written down, compare the list to see if your income is sufficient enough to keep up with your expenses. If it is not, you may have to think about eliminating certain expenses, if possible.
2. Determine If You Can Eliminate Any Monthly Expenses
Even if your income can keep up with your monthly expenses, you may want to think about eliminating or reducing some if you can. Think about expenses like your cable or satellite television bill and your telephone bill. Do you really need all those channels on television or could you cut back on some and reduce your bill? The same goes for telephones. Is it really necessary to have both a cell phone and a landline? Chances are you could eliminate the landline and save yourself some money every month. Although you may not want to get rid of certain things, divorce may force you to take a good look at your wants and needs.
3. Make a Budget and Stick to It
To facilitate financial recovery after divorce, you should make a budget and try to stick to it at all times. Make a budget that allows for necessary expenses only, such as monthly bills, groceries, and gas. If money is tight, perhaps you will have to forego those daily Starbucks trips until things get better. You can also budget a certain amount each week for things such as entertainment, shopping, or dining out. If you are still struggling even on your budget, you may have to think about making some other, more substantial changes.
4. Move Into a Cheaper Home
Although you may not want to think about moving out of the home you have lived in for a number of years, it may be the best option if you are struggling financially. By moving into a small apartment or rental home that costs significantly less per month than your home, you will likely save yourself a great deal of money. This, of course, will not be as easy if you have children at home or pets you cannot part with.
5. Drive a Cheaper, More Fuel Efficient Car
Do you have to pay a large car payment each month? If so, you may want to think about trading in your current vehicle for something a little more reasonable. You should also think about the money you spend on gas for your vehicle. If you have a very large SUV or truck that guzzles gas, you should think about getting something more fuel efficient. Even though you may not want to get rid of your current vehicle, in reality it may save you a lot of money on payments and gas.
6. Look for a Credit Card With Good Terms
After divorce, you may be left with a fair amount of credit card bills or unsecured loans. If so, you may want to look around for a credit card with good terms. If you happen to find one with a reasonable APR and low balance-transfer fees, it may be a good idea to apply for it. By transferring the majority of your unsecured, high-interest debt to one single account, it may be easier to manage. This can also save you money in the long run.
7. Try Not to Take On Any New Debt
If you are struggling financially after divorce, it is very important that you try not to take on any new debt. It is recommended that you attempt to pay off your current debt load before making any new, big purchases or taking out any new, large loans. You certainly do not want to get yourself in over your head if you are already almost there.
8. Get a Second Job
Another way to boost your chances of financial recovery after divorce is to get a second job. By bringing in additional income, you will be able to pay off your debts and get on your feet faster. Keep in mind this may not be the best choice for everyone, especially ladies with small children.
By taking charge and using some of these tips, you should be able to financially recover after divorce in no time at all. Always stay positive and keep in mind that your lifestyle changes do not necessarily have to be permanent. After you get on your feet financially, you may be able to gradually change things back to “normal”.
Guest post from Riley Finnigan.