How can I create a budget after divorce?

On Behalf of | Sep 13, 2019 | Property Division |

Even when divorce is in the best interest of all involved, it can be an expensive process. Things like property division, alimony, and child support can all take a financial toll on a person. As a result, you may find yourself with much less money than you had while you were married. If so, The Balance offers the following tips to help you create a budget you can live with after your divorce. 

The first step is to figure out just how much money you’re making each month. Once you’ve established that, add up your fixed and variable expenses. Fixed expenses are those that remain constant from month to month. This includes rent or mortgage payments, insurance costs, utility bills, and other expenses. Variable expenses are those that change on a regular basis, such as grocery costs and entertainment expenses. These considerations will be the foundation of your budgeting plan.

Even if you have a good idea of how much you spend each month, it’s still a good idea to track your expenses for a period. You might be surprised by the results, especially when it comes to seemingly insignificant purchases. For instance, a daily cup of coffee can really add up when you’re trying to create a budget. Track spending for a month and target areas of overspending so they can be remedied.

Finally, make sure that putting aside money for savings is a part of your budgeting plan. Savings are essential, whether they’re used to cover an unexpected expense or put to use for vacation or some other large purchase. It’s best to be proactive about saving, which you can do by automating payments from your checking account to dedicated savings account every month.