Divorce Tools Splitting Up Your Children Relationship Info Self Care General Info
Personal Budgeting After Divorce
Personal Budgeting Tips to Help You Get a Handle on Your Finances
After divorce, a woman’s standard of living generally goes down because she is now having to support a household on one income instead of two. When you add in the extra expenses that go hand-in-hand with divorce, such as legal fees, full-time daycare, and replacing items that were split up in the divorce, it can feel like a financial black hole.
This is where budgeting can make all the difference. As you work your way to independence, drawing up a budget will give you a good over-view of your financial situation. Yes, it can be extremely depressing to see everything in black and white, but it will enable you to make the changes necessary to get by.
So how do you get started developing a personal budget? You can either use software or the pencil and paper method. Personally, I like using computer software because it lets me manipulate my information so I can see at a glance where I'm spending the majority of my money. If this suits your style, check out the Quicken Online Edition!
You can also use plain old paper and pencil if that suits your personal budgeting style. Below you will find a general budget outline to help you get started. It should also give you a clear idea of what your expenses and income are.
Daycare:_____________ Camps:_______________ Kids Lunches:_________
Team Fees:___________ School Photos:________ Allowances:__________
Office Supplies:_______ Bank Fees:___________ Credit Cards:__________
Bank Loans:__________ Auto Loans:__________ Auto Gas:____________
Auto Insurance:_______ Tires/oil/Maint._______ Tolls:_______________
Doctor Bills:__________ Dental:______________ Eye Care:_____________
Repairs:______________ Gifts/Cards:__________ Cleaning Supply:______
Clothing:_____________ Barber:_______________ Nails:________________
Pet Care:_____________ Magazines:____________ Newspaper:___________
Health Ins:___________ Life Ins:_____________
Total Expenses:_________________
INCOME Wages and Salary:_______ Business Income:________ Rental Income:__________
Pension:________________ Child Support:__________ Alimony:________________
Investments/Interest:______
Total Income___________________
There will be other sources of money such as tax refunds, gifts, bonuses, and inheritances,
but you should not rely on them in your personal budgeting. It is best to use these to pay down debts.
To see where you stand on your personal budgeting, subtract your expenses from your income. While this may be a negative
number, there are ways to narrow the gap.
Controlling Your Expenses
While you may not be able to increase your income, you can lower how much money goes out so that you actually have enough to live on until the next paycheck comes in. Temporarily foregoing some of the extra expenses can really add up over a year’s time. For example, consider doing without the following for now:
Premium movie channels
Call Waiting
Caller Id
Eating Out once a week
Magazine subscriptions
Newspaper subscription
Take out Pizza once a week
Non-member ATM Fees twice a week
Starbucks twice a week
In a years time, you will have saved close to $3000 with very little sacrifice. As you can see, little changes can make a big difference. If you look at your financial situation as a challenge instead of being overwhelmed by it, you will be a lot better off in the long run. You can take control of your destiny.
When You Can't Overcome Your Budget Shortfalls
Many women face dire financial circumstances after divorce. For your sake (and the sake of your children) don’t be too proud to ask for help. Money to pay the lawyers, buy food, or put gas in the car is necessary. Someone to watch the kids while you work, go to appointments, or just unwind is necessary. Your family would probably be willing to help you out if you explain the situation.
If your situation is extremely tight, consider applying
for federally subsidized programs such as AFDC, Medicaid, HUD, and federal daycare assistance.
It may be hard to swallow your pride, but these programs can help you survive until you are
financially stable.