2018 is all about you!
Have you finally left your spouse after a toxic and bitter relationship? If so, then the New Year is a perfect opportunity to reinvent your life on your terms and be happy.
Here’s how to keep your finances happy after divorce.
Look at the abundance of new opportunities:
Look at the new phase of your life positively. Life has thrown a bundle of new opportunities in front of you. Take advantage of them and make a fresh financial start. If you were a homemaker, then start looking for a new job. If you are emotionally damaged, start dating. Life is too short to fret over a single person.
Get educated about your entire financial picture:
Have a look at your income, expenses, assets, and liabilities. You need to understand where you’re today and what you want to ask for in the future. Understand what kind of retirement accounts and investment plans you have. Find out if you have credit card debts, mortgage or personal loans. Calculate how much you’re spending, and how much is coming into your bank account.
You can use separate sheets for calculating your income, expenses, and liabilities. On every sheet, make a line item entry with the name of the account holder, the type of account, the interest rate, and the amount.
Knowledge is power.
Get an overview of your finances and think about the plenty of things you can do to improve your financial situation significantly.
Move money from the joint account:
You and your ex probably have a few joint accounts. Close your joint accounts so that your ex can’t misuse them. Move money into an account that is solely in your name to make sure you have access to that cash. Ask your divorce attorney so that you don’t take too much or too less. Use the money to pay off your credit card debts and utility bills. You can also keep the money in your bank account as an emergency fund.
Update your wills and trusts:
If you have made a will, tear it and make a new one. If you don’t have complications, then create a basic will using software designed for the purpose. If your situation is not simple, then hire an attorney to create a will for you. Consider appointing a new executor for your will and updating your beneficiaries for insurance policies and pensions.
Pay your pesky bills every month:
The mortgage, credit card bills, cell phone, utility bills, and tax are pesky bills. If you don’t pay your credit card bills in full, interest accrues on them. So pay the full bill amount every month. Instead of paying your monthly income to the creditors, consider how you can pay income to yourself in the form of a tax-deferred retirement plan.
Debts can ruin the joy of your newly attained freedom. Never let debts ruin your happiness. Be confident and responsible.
Pamper yourself once a month:
It is essential to pamper yourself at least once a month so that you can recharge your batteries. Take yourself to a movie or pamper yourself with a new haircut or a wardrobe. Gorgeous clothes and a fantastic hairdo will make you feel like a sexy woman. You’ll be confident and feel happy. Sometimes, plan weekend trips so that you can share a hearty laughter with your kids. After all, that’s what financial freedom is all about.
Be financially empowered:
Have you sacrificed your career for taking care of your family and kids? As a responsible woman, you have always taken care of other people’s wants and needs. You have forgotten to follow your passion and dreams.
Listen to your inner voice and follow your dreams. Get a job or start your own business. If you haven’t worked for many years, then it might take a few months to get a job. Don’t lose hope. Keep trying till you get a job. If you’re still stuck, talk to a trusted friend who can give you practical solutions, an action plan, and the time frame.
Live within your means:
Your lifestyle changes dramatically after divorce. Both your income and expenses change significantly. It’s high time you review and revise your personal budget so that your expenses (credit card bills, legal fees, debt repayments, mortgage, and education expenses) are always lower than your monthly income. Spend less than what you earn so that you can save a specific amount every month.
Develop healthy spending habits so that you can live within your means.
Take care of your emotional and financial health:
Forgive your ex for your own mental peace. It will free you and help you to move on. Too much hatred will only keep you locked in your own personal prison of pain. Your ex was your past. Now you have to think about your present and future.
Exercise makes you feel happy and physically fit. When you exercise, your brain releases endorphins and serotonin, which make you feel happy and prevent depression. Regularly exercising for 45 minutes can make a big difference to your physical and emotional health. So to give yourself an extra boost, learn to skate or surf. You can also swim daily to be in a good mental state and a physical shape.
Meet with a financial expert and get advice on how to achieve your financial goals. Divorce issues are little complicated. So it will be best if you consult an expert who specializes in divorce issues. The expert can help you understand how assets get divided in divorce as per the state laws, which vary greatly.