When the divorce has finally finalized and you have the decree in your hands, it might seem like it’s going to take forever to rebuild yourself as an individual. Unfortunately, for many different people, divorce can destroy any financial history you’ve had with your partner. Far too often the expensive process of separating affairs can leave your bank account drained and your credit card maxed, leaving you feeling depleted and defeated. To help you rebuild your finances after divorce, here are some helpful tips:
Rebuild small: Far too often looking at the negative effects of divorce can be debilitating. If you’re feeling over-whelmed and a little too anxious about rebuilding, you’re liable to do nothing in the long-term. Break down your hurdles into smaller more achievable pieces and work to accomplish even one item every three to four months. By breaking things down into smaller sections, you’re more likely to appreciate when you’ve completed various things – instead of solely focusing on the entire negative impact.
Build your savings: Whether you need something for an emergency or just want to have a bit of security if things go wrong – start by setting some money into a savings account every pay period. Remember, the amount of the money doesn’t specifically matter as long as you get into the habit of putting money into a separate account that remains untouched. If you’re not sure whether you’ll be able to save, take the time to get a part-time job and use the money to add an extra cushion to your bank account.
Cut back unneeded expenses: When the funds are limited it’s important to refocus your attention on the needed costs and learn to weed out anything that typically doesn’t help – at least for the short-term. Start by looking at your budget and find anything extra that you can do without. They don’t have to be huge expenses, but limiting coffee purchases, restaurant purchases or manicures can add up to a hefty price tag long-term.
Stop worrying about the Jones’: It’s easy to get caught up in a game of who bought what – but don’t let what others are purchasing define how successful you are at rebuilding your financial wealth. Take the time to evaluate what your family has and stop worrying about the latest gadgets and other monetary expenses people are paying to have the latest and greatest.