how to organize your finances

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.