Finances: 5 Steps to Rework your Budget after Divorce Leaves You with One Income
Going through divorce is a huge change in almost anyone’s lifestyle. While it may seem like your world is crashing down around you and all of your focus should be directed on the legal aspect of your divorce, you shouldn’t forget about your finances. Going from two incomes to one is a big change and it takes a lot of planning and preparation.
Here are five simple steps to making two incomes one.
1. Don’t put finances on the back-burner.
Despite all of the other stresses and demands going on in your life, it’s never too early to begin planning for your financial future. Waiting till after the separation is complete to begin figuring out your new budget can be a costly mistake.
2. Adjust your spending habits.
The first step to managing a single income lifestyle is to understand when and where you spend money. Cutting out superfluous spending and avoiding impulse shopping is just one way to begin curbing those habits.
3. Cut the credit.
It’s not easy to cut back on using your credit cards but it’s vital to your success with a limited budget. Credit cards may come off as an easy way to get by from one month to the next but the debt and interest you’ll be paying will only restrict your budget further. Consider cutting up all credit cars but one, and use it only for emergencies.
4. Pay yourself first.
When figuring out your new budget it’s important to realize that the needs of your family must come first. Set aside the amount of money you NEED each month to maintain your family and then calculate your bills. This will give you a more accurate idea of where you stand and allow you to begin building some savings.
5. Manage resources.
Managing resources such as clothing and food is an important way to cut extra costs out of your monthly budget. Purchasing in bulk and during sales can help shave some spending from your expenses. Buying clothing as needed and with a certain price-per-item requirement is a great way to keep yourself in check.
