Post-Divorce Budget: Managing Your Money

Getting your new life after your divorce going is easier said than done. In fact, there’s a few things you’ll need to do beforehand. Most notably, this includes setting up a post-divorce budget. Having a good budget can really help you avoid financial stress and begin your new life on the right foot…

Post-Divorce Budget: How To Adapt

Revisit your old one

The building blocks of your post-divorce budget can really come from the old one you had. Now, you’ll certainly have to make some adjustments. After all, you’re probably going from having two sources of income, to only yours. However, there might also be some expenses which you don’t have to worry about, or maybe even some new ones to consider.

Plus, there’s a pretty easy way of visualizing this starter budget. Draw a line down the middle of a piece of paper, and have one side be for your income, and another for expenses. Fill each side out, and then add the totals up at the bottom. This quick draft budget can help you see if your finances are in good shape, or if you need to make some changes.

Focus on the necessities

If you find that your post-divorce budget isn’t looking so good, then it’s time to make some cutbacks. That means that you’ll have to focus on the necessities over the more optional things. Basically, you’ll want to prioritize your needs (clothing, food, shelter, and transport) over your wants.

Still, even for your needs, you don’t have to go crazy. For instance, you might need clothes, but that isn’t an excuse to go on a big upscale shopping spree. Buy the things you can comfortably afford, and cut out those other things which are just draining money. This can help you balance out your budget.

Avoid big purchases

A big purchase can really mess with your post-divorce budget. For example, you might be tempted to move to a new house or get a new car as a sort-of kick starter for your new life. However, these kinds of purchases can really hurt your wallet, and leave you stuck in a worse situation in the long run.