Why a Post-Divorce Budget is Critical
Not only can divorce be emotionally taxing, but it can also take a toll on you financially. Now that your divorce has been settled, and you can no longer rely on two incomes, you’re probably concerned about how you will make ends meet and keep up with your expenses. One of the best ways to ensure you stay financially healthy is to budget. Here are some post-divorce budgeting tips that can help.
1. Focus on Your Essential Expenses
First, start by focusing on the essential expenses. Essentials are the things that you need to survive. This may include:
- Rent/mortgage payments
- Car payments
- Auto insuranceAssess
2. How Much Money is Coming in vs. Going Out
Take your net income and assess how much money will go toward your essential expenses. This will give you an idea of how much you have left for other things that come up, such as repairs to your home or car, or extra items you may need for your children. If you find that you are just making ends meet, don’t fret. Taking on a side-hustle for extra income could be a fun way to make some extra cash.
3. Speak to a Financial Advisor
When unsure about how to manage your finances, seek a professional financial advisor. An experienced financial professional can guide you in the right direction of where you may need to cut back or ways you can invest your extra money.
4. Take Control of Unnecessary Discretionary Spending
While it’s always nice to treat yourself to something nice every once in a while, it’s critical to look at how much you are spending on discretionary items. For example, do you go out to dinner a few times each week? Did you buy new clothes that weren’t necessary? Are there Amazon boxes at your doorstep every day? These are just some of the things to consider when it comes to keeping your spending within a budget.
5. Create Healthy Financial Habits
If your financial habits are not as healthy as you’d like them to be, that’s okay! It takes time to develop a financial routine of smart budgeting. By keeping up with your budget regularly and keeping on top of where your money is going every month, you’ll be able to bounce back financially after your divorce.
Are You Considering Divorce? We can Help.
Divorce is never easy and can be financially challenging throughout the process. However, having an experienced divorce lawyer in your corner can help you protect your finances and other assets. When it’s time for you to begin the divorce process, we are here to help. Our attorneys will work hard to ensure you receive the best possible outcome for your case. Know that you are not alone, and Drexler Law is on your side and will guide you through every step of the way.
Contact our Colorado Springs divorce attorneys today at (719) 259-0050 to schedule a consultation.