After a divorce, many people experience a substantial change in living style. Let’s face it, where there were two incomes, now there is one. Where the cost of living was split between two, now there is only one. Your joint savings and retirement accounts grew through automatic contributions. Now there usually isn’t enough cash at the end of the month to do much “saving”.
You are the CEO of your organization and it is up to you to make it work. Taking a realistic business approach to your finances will enable you to live on a smaller income. Here are some basic elements of good financial planning.
What is Your Income?
Think Rationally and Objectively: Go for What You Need, not Want
Remember Emergency and Retirement Funds
Your financial future also depends on what you can put away today for tomorrow’s needs – be it an emergency or retirement. Seek the advice of a certified financial planner to learn how to manage a savings plan that fits your current financial figures. All savings are good – even if they’re a little smaller than they were.
For more information, check out “Post-Divorce: Resize and Realize Your Financial Goals and “Destination Financial Fitness – A Travel Guide.”