When you agree on your asset split with your ex, it may leave you in a financial position you are not use to, one that means you need to get serious about where your money comes from and goes…
Getting clear on your cost of living is really important from the beginning, don’t be like me, where it took me almost two years to realise I was spending more than I was earning…
It may mean you need to get real and honest with yourself. Such as where you live and your lifestyle choices. And this is not necessarily a permanent way, it’s more about the transition so you don’t put yourself in a financial crisis.
Doing a budget could be key and sticking to it.
Having separate accounts for saving, living costs and luxuries can help keep your funds in control. Also not to have a credit card if you can help it, will help you stay on track financially. Do you know that in Australia alone we have a national debt on credit cards of $22,857,457,567. Are you part of this ever growing debt? Credit cards can be helpful but to benefit from them you need to be able to pay them off each month before the interest kicks in, because a $150 dress on a credit card you purchased three months ago is now costing you more than $150. Is it really worth it? I was in that situation and I can tell you it isn’t. A credit card can be the death of your bank account and any future of a comfortable lifestyle.
Where is your money going?
A good tip is to have a small booklet or type in notes on your phone, each expense right down to the coffee you have and at the end of the week see where your money is going… A coffee here and there may actually be putting you in strife and it’s the small expenses that add up quickly.
A financial planner maybe key, where you can be guided and have an understanding where you stand financially and to obtain some strategies moving forward. A financial planner can guide you through the transition and if you have any investments to ensure you are on the right track to a healthy financial future.
Maybe you are not happy with the financial outcome after the settlement and with that there can usually become some resentment with your ex. Especially if you feel you have drawn the short straw on the settlement. During this time you need to be honest with yourself, you need to be kind to yourself and that means getting enough sleep, eating well and not giving out all your energy to your ex with anger and resentment. I know I would rather use the energy on being positive and planning on how to move forward with what I have.
If you owned a home with a mortgage and you needed to sell it to divide the assets there may not be much cash left. So starting from scratch can be hard to accept. You need to not allow yourself to resent the situation, and be more about realising being in a relationship that was not healthy is no way to live your life. It’s about taking control of who you are again and being ok with it. And to understand, this is not the end. You can embrace the change and focus on how you will show up and work towards a healthy financial future.
Planning is really important and being honest with yourself.
Getting the right support can help you navigate a future that you are comfortable with, and you must remember it will take time, and you may have to work hard to get there, but right now you need to take responsibility for your financial future.
Saving is key, and if you don’t have a generous income coming in, it may be hard to do, but with Cathryn Gross from Twelve Wealth tips below you may just by making some small changes save yourself at least $5,000 a year. This could mean you can afford that overseas holiday you thought would only ever be a dream! It’s doable, you just have to get real and plan.
Skip one $20 purchase every week
This could mean skipping your daily coffee, a lunch or a night of takeout, but it will save you $80 a month and $1,000 a year.
Try and slash your essential bucket by 10%
For many of you, the big items in the monthly budget are the mortgage, groceries and utilities. These can be hard to cut, but it is possible. Have you reviewed the interest rate on your mortgage lately? Are you menu planning before your grocery shop? By being really aware of each dollar you spend on essentials, you may be able to cut your spending by more than $2,000 a year or more.
Try a financial fast
This is about not spending at all in a lifestyle category for a quarter, but it could be that you stop buying clothes or decide not to eat out each week… and the savings will quickly add up to hundreds of dollars a week, and save you more than $1,000 over a quarter.
Stop using plastic
Many of us are shocked when our credit card bill arrives each month, I know I often am. So, I’d like you to try not to use your credit card at all for a month. I know there will still be some direct debits that come off it, but you will be overjoyed when your bills come and you can move money into your savings account rather than your credit card for the month.
Audit your direct debits
Are you still reading the online newspaper you subscribe to? Using your gym membership that is direct debited each fortnight? Watching Foxtel? Direct debits can creep up on you. So, go through your bank statements and unsubscribe to all the things you are not using.
For further support contact me today and we can start to navigate to a healthy future, from within and financially.