If you are struggling financially after a divorce, you're not alone. Going from one combined household to two separate ones is expensive regardless of your income or divorce settlement. With a little focus, though, you should be back on track in no time.
Consider the following steps to recover your financial situation more quickly.
The most important thing that you can do is to prioritize improving your financial situation. Sure, you may recognize that your finances are not what they once were, but if you don't take the steps to change your situation, you'll find yourself in the same spot months or even years from now.
Decide to start immediately. You'll thank yourself later.
Once you've made improving your financial situation a priority, it's important to know where to start. Take the time to write down all of your accounts including bank accounts, retirement accounts, loans, etc. Document each balance, the most recent return, and/or the interest rate involved.
For savings and investment accounts, include how much you are contributing to those accounts each month. If you have debt, make sure to include whether the interest rate is fixed or variable along with the minimum payment you are responsible for.
Once you've evaluated your starting point, you'll be able to see areas that need improvement. If the issues aren't clear, start by asking yourself the following questions:
Everyone's financial situation is different so your areas to focus on will be unique to you. If you need help identifying and/or prioritizing where to focus, consider joining our Financial Recovery Boot Camp.
Once you've decided where to focus it's time to begin setting specific, measurable and time-bound goals for yourself. For example, a goal might be to increase your emergency savings account by $10,000 over the next 12 months. It might be tempting to skip this step, but without a goal, there can be no plan, and without a plan, failure is inevitable.
Use the goal you've set to create your plan. If your goal is to save $10,000 over 12 months, then you'll likely need to put away roughly $840 each month. How will you do that?
Put the plan in place ahead of time so that there's no guesswork as to how you will meet your goal.
People who regularly meet their goals are most likely to have accountability partners. Find someone you trust that you can share the details of your plan with. Make sure it's someone who will ask you the hard questions and keep you motivated to press forward with your goal, even when it doesn't feel like fun anymore.
If you don't have someone in your life who can serve as your accountability partner, join me for Financial Recovery Boot Camp. I will guide you to quickly improve your financial situation in just 90 days.
Financial Recovery Bootcamp is a program designed to support women who are going through a divorce or are recently divorce in improving their financial situation. The program provides guidance and group support as well as the following:
BONUS - As a bonus, you'll receive access to the Financial Foundations Learning Lab. If you need help improving your basic financial literacy, this is for you. Financial topics are broken into bite-size pieces so you can learn as you have time. You have lifetime access to the learning lab, including all updates and new content as it's added.
Financial Recovery Boot Camp is designed for women who are working to rebuild their finances after a separation or divorce. If that's you, we'd love to have you join us. Participation in the program is extremely limited so that we can provide you with a high level of support.
Interested in joining us? If so, visit myfinancialrecovery.com today and let's get started.