Written By Own Your Destiny Team: A divorce can turn your life upside down. You may find yourself managing your own finances after years of relying on a spouse’s financial literacy. Take this time to organize your finances and discover the empowerment that comes from financial independence, instead of letting the prospect of financial management weigh on your shoulders.
5 Tips for Financial Organization
Consider these tips as a starting point for your post-divorce financial success. These tactics can help you become financially literate, debt free, and ready to move forward in this new chapter of life:
- Pin down the basics. Until you know where you stand, you won’t know how to reach your goals. Gather all your post-divorce financial documents, including mortgages, credit card statements, investment portfolios, loan statements, insurance coverage, your current credit report, bank statements, and other documents. If you have a basic idea of your income, assets, and expenses, you can make educated decisions each day. To remain financially solvent, you must make more than you spend – period. Consider this a starting point for financial management.
- Automate as much as possible. If you have a reliable source of income, consider automating bill payments as well as savings and investment contributions. Financial technology can eliminate the stress of monthly payment dates.
- Create a system. Use Excel files, digital folders, and physical folders to maintain secure and accurate records of your financial standing. Create records for tax purposes, financial statements, outstanding debt, bills, and insurance. I cannot stress enough the peace of mind that comes from knowing exactly where all your pertinent financial documents rest.
- Remain proactive. If you struggle to financially adjust to circumstances post-divorce, consider a more hands-on approach to financial organization. Use cash in an envelope system to pay for variable expenses, keep every receipt, and reconcile your bank statements every month.
- Partner with a professional. After a divorce, the prospect of financial management often adds insult to injury. Instead of struggling on your own, partner with a money coach who can provide valuable insights into your situation. Look for someone with experience handling divorce situations who can provide investment and debt counseling. For many, professionals provide a level of accountability that makes financial management emotionally easier to achieve.
After a divorce, you are the captain of your ship. Financial solvency, retirement planning, and estate planning all depend on you. Achieve peace of mind with proactive management and professional support.