How You Can Start Saving Money Again After a Divorce
Divorce can be just as challenging financially as it is emotionally. The costs to consider include legal bills and prices of additional residences. However, just because the divorce process is costly does not mean you won’t be able to recover. In fact, it is possible to begin saving immediately after a divorce and continue working toward your long-term financial goals.
Below are some tips to help you manage your money after a divorce:
- Analyze your income: Honestly assess your income, including earnings from your job, investments, child support and alimony. Do not plan for any raises or bonuses in your plan — only include what you know you will get.
- Consider your expenses: Record all your regular bills and financial commitments to get a good sense of your expenses in an average month.
- Set some short-term goals: Once you have a realistic picture of your current income and expenses, you can begin setting some short-term goals. Are there realistic savings targets you would like to hit? Is there anything in particular you’re saving up to buy? Again, the object is to be as realistic as possible, understanding that it’s going to take some time to build up savings.
- Emergency funds: If you do not already have an emergency fund, make sure you start one. Ideally you would have at least three to six months of living expenses for emergencies, but this is not possible for everyone. Set aside as much as you can. Even just having $1,000 in a savings account can be a big difference maker, as you never know when an unexpected expense will arise.
- Develop some long-term plans: Retirement and other major financial goals might feel like a distant dream after the financial turmoil of divorce, but you cannot lose sight of these long-term goals. Continue contributing to retirement accounts and never take any early withdrawals.
For the sound guidance and advice you need throughout the divorce process, contact a knowledgeable family law attorney with Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP.