Getting Your Finances in Shape After a Divorce

List Your Income:

• Grab your notepad, or better yet, open up a spreadsheet.
• Write down every single penny that comes your way. We’re talking about your job, any side hustles, alimony, child support – all of it.
• Be real with yourself. If your income changes from month to month, take an average.

Track Your Spending:

• This is like being a detective in your own life. For a whole month, keep tabs on every dollar you spend.
• You can do this the old-school way with receipts and a notebook, or get techy with a budgeting app.
• Don’t forget the small stuff – yes, even that morning coffee counts!

Sort Your Spending:

• Now, let’s play some sorting games. Put your expenses into groups like ‘Household,’ ‘Groceries,’ ‘Kids,’ ‘Fun,’ ‘Car,’ and ‘The Random Stuff.’
• This will show you where your money’s really going. You might be surprised how much those little things add up.

Set Your Spending Limits:

• Here’s where the magic happens. Based on your income and what you’ve been spending, set a limit for each category.
• Be realistic. If you’ve been spending $300 on groceries, don’t suddenly drop it to $150.
• Leave some wiggle room for unexpected stuff, because life loves surprises.

Plan for Savings:

• Savings are super important. Even if it’s just a small amount, try to put something aside.
• Think about short-term savings (like for a holiday) and long-term savings (like for your retirement).

Adjust As You Go:

• Your first budget might not be perfect, and that’s okay. Life changes, and so will your budget.
• Every month, take a moment to see if you need to adjust your spending limits or savings goals.

Get Everyone Involved:

• If you’ve got kids or others in your life, bring them into the budget conversation.
• It’s a great way to teach them about money and make sure everyone’s on the same page.

Celebrate the Wins:

• When you stick to your budget, give yourself a high-five. Seriously, celebrating the small victories keeps you motivated.