Updated: Nov 29, 2019
Each year, more than a million women feel the emotional and financial impact of divorce.
Despite a common perception that in divorce women ‘make out better’ than men, research shows that even working women can experience a nearly 30 percent decline in standard of living in the first year following a split.
One thing is certain: ending a marriage is a powerful disruptor of financial goals and stability.
The aftermath of my own divorce was a financial nightmare. I faced foreclosure on my home and simultaneously, a job loss. To make matters more daunting, over the course of several months I depleted my hard-saved emergency funds as I had to tap into that money just to stay afloat.
Even considering those setbacks, using a steady and systemic approach, I was able to rebound — growing $1 in savings to more than a quarter million in less than 10 years.
So to women recently divorced (or going through), I assure you: with the right mindset and tools you can stabilize your finances.
Avoid these common pitfalls along the way.
Creditors are calling. You’re tapping your savings. The next payday can’t come soon enough. The impact of your divorce is real, but you are determined to carry on business-as-usual.
Newsflash: it’s time to face your new financial norm and take action!
Going from dual-to-single income is a major transition, and it will take discipline.
If you didn’t adhere to a budget in marriage, let your divorce be a wake up call that short- and long-term financial planning and budgeting is a must.
2. Going it Alone
There is one tool of the trade of maintaining your finances you cannot forego: an effective budget.
Budgeting is not mysterious. There is no guesswork involved. Budgets are precise and designed to hold you accountable and keep you on track.
Comprised of one income, your R.E.A.L.I.S.T.I.C budget will track daily and monthly expenses as well as long-term expenses to help you stay on top of earnings and spending. But the best thing about your R.E.A.L.I.S.T.I.C budget is that it can actually create hundreds of dollars in savings when combined with discipline and several budget hacks. That means not only will you be surviving… you’ll be on your way to thriving.
3. Overlooking the Silver Lining
What greater impetus than divorce to start afresh, create new goals and press reset on your financial priorities?
With independence, you’ll have more control over your budget and how money is spent.
You can choose to make financially beneficial decisions, like downsizing to a smaller house. And with discipline and a R.E.A.L.I.S.T.I.C budget, you can build wealth by maximizing all of your resources. With time, you may be surprised at how your financial situation can rebound and even improve after divorce.