5 Quick Financial Survival Tips for the Recently Divorced

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Are you (or someone you know) recently divorced? I’m not … but I’ve worked with several clients who are.

If are recently divorced, you may be feeling not just the loss of a partner, but also the absence of the second paycheck. Chances are, you have been living a lifestyle based on two incomes, and now that you are the sole provider there are some changes that will need to be made. First important thing is to determine what you can live on by compiling your household and other bills and adding them up, including your food and gas expenses. Then try these 5 Quick Financial Survival Tips for the Recently Divorced.

Downsize Housing or Seek Assistance

If your rent is more than you can handle, you can search for a smaller more affordable apartment. Or if you can’t afford your mortgage alone, you can try to refinance or put the home on the market for sale. Consult with a real estate professional to help you through the process in the event a Short Sale is necessary. There are also nonprofit organizations that provide assistance with foreclosure prevention.

Reduce Cable & Cell Phone Bills

There are some quick things you can do to help you through the first year, such as reducing your cable and cell phone bills. Many of us have more channels than we watch, and now would be a good time to check to see what you are paying for and remove any channels or extra cable boxes that you do not need. Change your cell phone plan to basic usage, if possible.  However, if your cell phone is your primary telephone, have your cell phone usages evaluated to find a better or more affordable plan. Also, removing any extra features and also choosing a plan with fewer minutes. Cancel your landline telephone service, if it is rarely used.

Shop Smaller Portions

Shopping for groceries may take some getting used to, especially if you have been in a relationship for a long time. You may want to buy smaller packages of things such as meat, or freeze the portion that you will not use immediately. Make a list and use coupons. Eating at home and bringing your lunch to work will reduce those extra expenses.

Increase Your Income

If you find that after doing everything humanly possible you still do not have enough to live on, then you may want to take on a part-time job to offset your expenses. This may be a challenge, especially if you have children. So, consider starting your own home based business or connecting with a network marketing organization that is right for you with a good compensation plan and reasonable independent business owner investment.

Update Your Beneficiaries & Tax Withholding

One of the most common things that recently divorced people neglect to do is update their beneficiaries on their insurance policies, bank and investment accounts.  Make sure you update all financial documents that have or require a beneficiary. Also, don’t forget to update your tax withholding on your W-4 or W-9, if necessary. Consult with your personal financial team to make these changes completely and correctly. If you don’t have your own personal Financial Team, create one that consists of your favorite Banker, Insurance Agent, Investment Adviser, Tax Accountant and Financial Coach, like me, to help you through this process.

 

Changing your lifestyle is hard enough without having to go through a divorce. Now that it is just you, and your children if you have any, altering your budget and spending habits will help you sustain your lifestyle. Cutting back where possible and necessary will give you greater flexibility with your spending plan or budget.

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What are some additional Financial Survival Tips for the Recently Divorced?