Post Divorce Financial Planning – Pt. 2

In part 2 of this segment on financial planning after divorce, here are a few more tips for surviving after the financial pinch of divorce.

  1. Start right now. Get the new financial planning momentum going immediately. It will quickly turn into a habit that can only make your life better. If you fall into the, “I’ll do it tomorrow” pattern, tomorrow may never come.
  2. Set smart financial goals. Make sure the goal makes sense, provides you with some level of happiness, and improves your feeling of financial security. If the goal does not meet ALL 3 objectives, reevaluate your need for that goal.
  3. Your needs are ever changing. What you may want today, may not even be in your consideration tomorrow. Understand that your needs will continuously change. You will meet someone new, may get re-married, may have kids, or may move. Be ready to adjust to the ever changing road of life.
  4. Don’t try to “double your money tomorrow” playing the investment game. This is not the time to become an E-trade guru with your smartphone. Learn to let long term growth and compounding interest become your friend. Engage a financial planner, preferably with a CFP designation (Certified Financial Planner) who can help you make good choices for the long term. The Millionaire Next Door met with hundreds of millionaires who built their wealth a penny at a time. Slow and steady will get you there.
  5. Large purchases must be examined with your future financial goals in mind. If a large purchase inhibits your new savings habit, reassess your need or urgency to make such a purchase. Consider how long it will set you back and, can your get back up to speed with your savings if you make this purchase?

Hopefully these two blogs provided you some insight and perspective into how simple financial planning after divorce can be. With a little work, you can create the financial life you always wanted. Happy are those who dream dreams and are willing to pay the price to make the come true.