Tips to Help You Get a Handle on Your Finances
by Tracy Achen
After divorce, a woman’s standard of living generally goes down because she has to support a household on only one income instead of two. When you include all the additional expenses that go hand-in-hand with divorce, such as retainer and legal fees, full-time child care, and replacing belongings that were split up in your divorce, it can feel like a financial black hole.
This is where budgeting can make all the difference. As you work your way to independence, drawing up a budget will give you a good over-view of your financial situation. Yes, it can be extremely depressing to see everything in black and white, but it will enable you to make the changes necessary to get by.
So how do you get started developing a personal budget? You can use either software or the pencil and paper method. Personally, I like using computer software because it lets me manipulate my information so I can see at a glance where I’m spending the majority of my money.
You can also use plain old paper and pencil if that suits your personal budgeting style. Below you will find a general budget outline to help you get started. It should also give you a clear idea of what your expenses and income are.
EXPENSES
|
Rent /Mortgage:____ Insurance: ________ Property Taxes:____ Gas: ____________ Electric: __________ Phone: ___________ Cable:____________ Water: ___________ Trash: ___________ Sewer: ___________ Internet:__________ Cell Phone:________ Groceries:_________ Eating Out:________ Pocket Cash: ______ |
Daycare:_________ Camps: __________ Kids Lunches: _____ Team Fees:_______ School Photos:____ Allowances:_______ Office Goods: _____ Bank Fees: _______ Credit Cards: _____ Bank Loans: ______ Auto Loans: ______ Auto Gas:________ Auto Ins: ________ Car Care: ________ Tolls:____________ |
Doctor Bills:______ Dental:__________ Eye Care:________ Repairs: _________ Gifts/Cards:______ Cleaning:________ Clothing: ________ Barber:__________ Nails: ___________ Pet Care:________ Magazines:_______ Newspaper: ______ Health Ins:_______ Life Ins: _________ |
Total Expenses: _________________
INCOME
Wages and Salary: _______
Business Income: ________
Rental Income: __________
Pension: _______________
Child Support: __________
Alimony: _______________
Investments/Interest: ______
Total Income___________________
There will be other sources of money such as tax refunds, gifts, bonuses, and inheritances, but you should not rely on them in your personal budgeting. It is best to use these to pay down debts. To see where you stand on your personal budgeting, subtract your expenses from your income. While this may be a negative number, there are ways to narrow the gap.
Controlling Your Expenses
While you may not be able to increase your income, you can lower how much money goes out so that you actually have enough to live on until the next paycheck comes in. Temporarily foregoing some of the extra expenses can really add up over a year’s time. For example, consider doing without the following for now:
- Premium movie channels
- Call Waiting
- Caller Id
- Eating Out once a week
- Magazine subscriptions
- Newspaper subscription
- Take-out Pizza once a week
- Non-member ATM Fees twice a week
- Starbucks twice a week
In a years’ time, you will have saved close to $3000 with very little sacrifice. As you can see, little changes can make a big difference. If you look at your financial situation as a challenge instead of being overwhelmed by it, you will be a lot better off in the long run. You can take control of your destiny.
When You Can’t Overcome Your Budget Shortfalls
Many women face dire financial circumstances after divorce. For your sake (and the sake of your children) don’t be too proud to ask for help. Money to pay the lawyers, buy food, or put gas in the car is necessary. Someone to watch the kids while you work, go to appointments, or just unwind is necessary. Your family would probably be willing to help you out if you explain the situation.
If your situation is extremely tight, consider applying for federally subsidized programs such as AFDC, Medicaid, HUD, and federal daycare assistance. It may be hard to swallow your pride, but these programs can help you survive until you are financially stable.
Articles by Tracy Achen