Managing Finances After Divorce

Managing finances after divorce can be challenging, especially if the amount of money coming into your household was much less than when you were married.  While it's not easy to get by in today's economy, there are steps that you can take to make it financially.  Read on for some tips to help you get started.

Divorced Doesn't Have To Mean Destitute

Divorced women face changes in their life that are both emotionally and financially devastating. In fact woman are far more likely to suffer financially than men after a marriage comes to an end. Twenty-seven percent of women versus ten percent of men will experience a significant decrease in their standard of living. For woman who decided to stay at home to raise their children while counting on their husbands income to provide financial security, establishing financial solvency can be particularly challenging. The following information can help you regroup, refocus and get your life back on track again.

Personal Finance 101- Once you are on your own, you will be responsible for making decisions regarding your personal finances. As difficult as it may be, you will have to begin thinking in terms of your future not the past. Obviously it is difficult to generalize financial advice since each persons situation will be unique. There are however basic personal finance tips that apply to everyone regardless of their financial circumstances.

• Create a Budget- Having a budget is key in managing your money. In short a budget will help you by tracking your income and expenses. You will need to collect all of your statements for utilities, rent/mortgage and all other regular expenses to better understand your income needs. Once you have a better understanding of where your money is coming from and going to you will be in a better position to eliminate unnecessary expenses. Having a budget also provides the structure you need in to incorporate saving money for your future financial needs. 
• Learn to Live Below Your Means- Adjusting to a new standard of living is one of the hardest challenges that newly divorced women face. Going from a two income family or the financial support of your spouse to a single income home can make anyone's head spin. You may have to learn to live on less money making it essential to re-examine your spending habits. All consumers, not just divorcees can benefit from learning to live below their means. To put it simply this means spending less money than you make. People who fail to learn this lesson are bound to struggle financially making it impossible to reach financial goals. 
• Reduce Debt and Increase Savings- A common sense approach to personal finance, debt elimination and building savings are vital to your financial security. Make all efforts to pay off debt that you already have, while avoiding incurring more debt. Having a well padded savings account is the best way to avoid going in debt in the future. Create an emergency fund to help pay for unexpected expenses and allocate a percentage of your income to invest in your future. 
• Seek And Accept Assistance That Is Available- Do not allow your new status as a divorced woman or single mother be a cause of shame or embarrassment. The fact is there are many, many women in your situation, resulting in government or community programs that have been created and designed to provide assistance to people in your situation. You may qualify for free or reduced cost health care coverage and assistance buying food and other necessities for yourself or your children.

No one will argue the fact that going through a divorce is hard on everyone involved. How you deal with your finances and other areas of your life that change as a result of a divorce will determine your long term success or failure. By following the tips listed above you can prevent a life long struggle with money. Things will undoubtedly be tough in the beginning but for the woman who focus and work toward financial independence the results will be well worth the effort.

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Trisha Wagner is a freelance writer for DepositAccounts.com where you can compare rates of deposit accounts from dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.

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