As a woman navigating life changes like divorce, managing your finances can be a critical aspect of regaining control and independence.
This is a general roadmap to help you begin the process of taking control of your money and your financial future, but my hope is that it will get you thinking (we are always thinking, aren't we ladies?!)
Also, I don't care if you were a stay at home mom and haven't had employment or income for several years. You can still do this, and you should do this. Give yourself options, especially now.
First Steps for Divorced Women to take control of their financial future
Life after divorce can be daunting, especially when it comes to finances. Taking the right steps is crucial to secure your future and financial stability. So, let's dive into some essential tips to help you kickstart your journey towards financial empowerment.
Divorce often comes with a shift in financial circumstances. Take the time to assess your current financial situation. Understand your income, expenses, debts, and assets. This clarity forms the foundation for building a new financial strategy that aligns with your goals and aspirations.
Crafting a budget tailored to your post-divorce life is paramount. Analyze your spending habits and identify areas where you can cut back. Creating a budget will help you track your expenses, avoid unnecessary debt, and work towards your financial objectives. A budget is not meant to be a prison sentence, or to keep you from living your life. In reality, a well thoughtout budget provides freedom, clarity and peace of mind. When you look over your budget, it might look a little bleak at first, but it is a roadmap to help you get to where you want to be 5, 10, 15 or more years down the road. Also, please note that you are not required to give a blood oath with your budget. It is adjustible as your financial situation changes!
Establishing an emergency fund should be a top priority. Having a financial safety net can cushion unexpected expenses and provide peace of mind during challenging times. Aim to save an amount equivalent to 3-6 months of living expenses to prepare for any unforeseen circumstances. I like to call it an Empower Fund . Why? Because my fund does exactly that. It empowers me and it protects should anything happen to me and my ability to earn income for a time. I got divorced during Covid. That sucked. Ha!
Consider long-term financial goals such as retirement planning, investments, and insurance. Consult with a financial advisor to explore suitable investment options and insurance coverage to safeguard your future and that of your loved ones. I will tell you that women are the biggest culprits of not planning for their futures. Especially if they were married. When I was working in family law as an intake specialist, and I listened to thousands of cases, I would say 80% of the time that the women who were calling in regarding divorce had very little understanding of their assets, investments and retirement. It wasn't because they were stupid. Absolutely not. However, they made assumptions that things were all good.....and then as their case proceeded forward they realized just how screwed they were. They may be entitled to support of some kind (alimony or child support, and maybe monies from the sale of an community asset), but that was it. So, I will say this as lovingly and as directly as I can:
Stop thinking you don't need life insurance, retirement or that you need to invest. Knock it off. If you don't have life insurance, or any sort of retirement (for those of you working), and you aren't investing.....start TODAY.
Listen. I get it. Navigating all of the financial ins and outs of what you need to do can be incredibly overwhelming. Been there. Walked that road. Still learning and I still make mistakes. Don't hesitate to seek support from financial professionals, counselors, or support groups. Surrounding yourself with a strong support system can provide insights, guidance, and emotional reinforcement.
Remember, you are not alone on this journey. By taking proactive steps and educating yourself about financial management, you are paving the way towards a secure and fulfilling financial future.
Rooting You On!
Your Dream BuildHer Bestie,
Tiffany Rhea
Empowering Women Who Dream and Do
The Dream BuildHer community exists to Empower, Equip and Educate women who are dreaming and doing work in their personal lives, businesses, finances and communities. Within this community, you will find resources, tools, education and real stories to help women over 40 create the life they have dreamed of having. Be sure to subscribe so that you never miss an update.
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