Published on May 8th, 2011 | by Pete0
Learning the Financial Ropes After Divorce
Q – I’m recently divorced, and it was my husband who tended to handle and manage the finances. Now I am on my own, where do I start? – Elaine
Well Elaine, this is a good question, and I very much doubt that you are the first person to be in the position you are in. The first thing you need to do is to set yourself a budget. Make 2 lists, one for income, and one for all of your expenses. Under income, list all of the sources of monthly money, such as your salary if you are working, any benefits you are in receipt of, and any child support payments you receive. Include the amounts of these payments next to the appropriate item. Under expenses, list any bills or obligations you are responsible for. These will include rent/mortgage, food, car related costs, utility bills sand any other regular expenses.
Next, add up the totals of both lists, and subtract your expenses from your income. If your expenses are more than your income, start to cross out any expenses that are optional. Continue this process until your expenses and income are in line. This is now your budget, and sticking to it will make your life a lot less stressful in terms of managing your money. If you are struggling to bring your income in line with your expenses, it may be that you need to make some changes in your life, such as where you live, or the car you drive. Even if you do learn that your income is less than your expenses, at least you will be empowered to know that you need to make changes. I wish you luck, and please let us know how you get on…