Going through a divorce can be taxing both emotionally and financially. Once your marriage is officially over you may be left trying to figure out how to rebuild your life and manage your new financial situation. One of the best ways to ensure you and your children are protected financially after a divorce is by making a new budget. While budgeting is not most people’s idea of a good time, it is essential in the early stages of post-divorce life. Continue reading to discover how to create a budget after your divorce and contact a skilled Shelby County, Tennessee family lawyer for legal advice and representation.
How to Create a Budget Post-Divorce?
The first step in creating a post-divorce budget is to honestly and accurately assess your new financial situation. You are probably going from a dual-income household to a single-income household or you even may have to get a job for the first time in a while. Use a spreadsheet or template to keep track of all of your sources of income including your salary, commissions, alimony, and more.
To figure out your financial situation you have to subtract your expenses from your income. Track your spending for a few weeks and total up your monthly expenses. This includes every cent you spend from rent to groceries, dining out, entertainment, child care, transportation, and more.
After subtracting your expenses from your income you should have an idea of your financial situation. Do you have money left over or is the number at zero? If so, you are probably able to afford your current lifestyle. If you are in the negatives, however, adjustments will need to be made.
Even if you can afford your expenses you should also consider your financial goals for the future. Ask yourself important questions like Do you want to pay off your student loans? Save up to buy a new house? Put money aside for retirement? Fund a college education for your children? Figure out realistic goals and determine how much money you need each month to accomplish them.
One of the most important steps when creating a budget is trimming your expenses. The less money you spend the more you can save and put toward your priorities. This is important especially if your expenses outweigh your income. Figure out places where you can or are willing to cut costs like eating out, unused subscriptions, and unnecessary expenses.
It is hard to be honest with yourself about your financial situation and cut “wants” out of your budget, but it may be necessary at least during the transitional stage immediately following your divorce. It is important that you set yourself and your kids up for financial success in the future. For more information, consult with an experienced attorney or financial advisor.
