Divorce will require you to make some financial changes. As you transition into living off a single-source of income, you’ll want to plan accordingly. A great way to do this is by creating a post-divorce budget. A good budget can seriously help you get your new life on track…
Post-Divorce Budget: Plan It Out
Figure out your income
The first step of designing your post-divorce budget is figuring out your income. After your divorce, you’re going to have to see how much money you’ll be making. Make sure to include all income in this, such as child support payments. Every bit goes a long way when making your budget.
It helps to try and plan your budget out in advance based on how you’re payed. For example, say you get paid every week. You’ll first want to come up with a weekly budget based on how much you make a week. Then, you can easily make a monthly budget by adding up four weeks of your weekly budget.
Calculate expenses
Of course, your income is just one part of your post-divorce budget. The second half are your expenses. Expenses after your divorce can be tricky depending on the outcome of it all. You might find yourself with either a few extra payments, or a pretty significant amount of extra expenses.
First, plan out all the expenses you know you’ll always have, like food, gas, rent if you live in an apartment, etc. Then, add in any extra expenses. These might be alimony, child support, or any payments you’ve taken over as a result of the divorce. Don’t forget about your kids too! Remember to include any expenses for them in your budget as well, especially if you have sole custody.
Balance the books
Once you have your income and expenses figured out, it’s time to balance your post-divorce budget. If your expenses outweigh your income, or don’t leave you with a lot left over, then you’ll want to make some changes. This might mean sacrificing some things you may have been used to before.
For example, you can save a lot of money if you cut back on fast food or going out to eat. Plus, try to limit any excessive spending on the things you don’t really need. Of course, it can be a bit difficult at first. However, you’ll end up saving quite a bit which can go towards those things that are really important.
