When I was divorced from the father of my children money wasn’t on my mind, at first. I knew I needed out and so I moved myself and two daughters in with my Dad without any type of plan. The first year was tough. Extremely hard.
But little by little things got easier and I’m now more financially (and emotionally) sound than I ever have been before.
Before we get to the financial aspect I want to make clear that one of the most important parts of coping with divorce is surrounding yourself with people who love and care about you. Once you have your support group in place everything else is much easier to accomplish.
Here are the steps I took to cope financially after divorce.
# 1 – Look for Inexpensive Housing
The number one thing that helped me financially was moving into low cost housing.
Housing costs can eat up a huge chunk of your monthly income. For the first year or so it’s better to go with something inexpensive while you get used to handling finances on your own. Choosing low cost housing can also allow you to save for an emergency fund and down payment on a future home if that’s something you wish to pursue.
# 2 – Save an Emergency Fund ASAP
When you’re counting on yourself to care for your family and there’s no backup income to fall on, you need to have money in the bank. Money that is earmarked especially for emergencies.
Work as much as you can until you get your emergency fund to a comfortable level. Save more than you think you will need.
Having emergency savings can provide financial stability and greatly reduce the stress you’re under.
# 3 – Budget
I’ve never been one to stick to a written budget except for when I was first divorced. At that point every single dollar mattered.
Create a budget, cut your expenses where you can, and be completely aware of where your money is going. (Once you get a good grip on budgeting you could then consider switching to the lazy man’s budget.)
# 4 – Prioritize Your Financial Goals
We all have different things that are important to us. However, after getting divorced I think one item that should be very important to you is getting out of any consumer debt. Consumer debt is another source of stress that you just don’t need.
Prioritize your financial goals and start taking massive action.
# 5 – Celebrate Your Progress
When I got divorced I had around $2,000 to my name. I celebrated every time that amount went up by $100. It felt so good that I was able to add to my savings account rather than drain it down.
Celebrate even the smallest of accomplishments to keep yourself motivated along the way.