While divorce is never easy, thoughtful planning can help ease some of the pain. Here are key things you can do to keep on track while transitioning to your new financial life.
1 CREATE A BUDGET Track your expenses, figure out how much you need to cover essentials and identify where you can make cuts. For example, by not eating out as frequently, you might be able to save $30 or more a week.
2 PRIORITIZE YOUR SAVINGS With your budget in place, calculate how much is left for savings, and set priorities.
- Stockpile an emergency fund that covers bills for at least six months – or, better yet, have two to three years worth in cash or short-term investments.
- Make regular retirement fund contributions. Be sure to take advantage of an employer’s matching contributions—otherwise, you’re throwing money away.
- Save for your kids’ college tuition.
- Sock away money for a vacation,
entertainmentand other splurges.
3 MAKE SAVINGS A HABIT Pay
4 CAPITALIZE ON COMPOUNDED INTEREST Albert Einstein called it the “eighth wonder of the world.” Put your money in accounts paying interest, leave it there and watch your money potentially grow. Michael convinced his children to start saving
5 PAY OFF CREDIT CARD DEBT EVERY MONTH Paying
This article was prepared by Broadbridge Advisor Solutions.