Divorce can upend your financial situation and make you reassess every facet of your life. While you are dividing your marital finances, it is a good time to start thinking about securing your future. Creating a financial plan will give you the peace of mind you need and deserve.
After the divorce, you may not be able to maintain your current lifestyle. But here are some steps you can take to achieve financial stability in your single life:
1. Update accounts and cards
There are some mundane steps that are essential. If you are changing your name and/or address, you may need to update your:
- Driver's license
- Social Security card
- Credit card(s)
- Bank accounts
- Utility accounts
- Titles on assets
Do not forget about changing beneficiaries on your retirement accounts or life insurance plans as well.
2. Review your finances and create a budget
Review your income, expenses, tax situation and assets. Look over your bank and credit card statements from the last year and categorize your expenses. Once you get an idea of your current situation, you can start looking forward. As you create a budget, think about monthly utilities, cay payments, mortgage payments and any expenses related to children, such as schooling and medical costs.
3. Build your own credit
One crucial aspect of a healthy financial situation is good credit. The first thing you should do is request a free copy of your credit report. Mull it over for any inaccuracies and report them. From there, use your credit cards consistently and pay your balances on time and in full when possible. If you do not have any of your own credit, look into getting a secured credit card.
4. Plan your career
Perhaps marriage put your career aspirations on the backburner. With more financial obligations, you may need to start working more. This may seem daunting, but getting a job can boost your self-esteem and help you afford your new life.