A divorce can challenge you financially on a number of levels. First, you may have gotten used to relying on you and your spouse’s mutual income streams. Second, the divorce itself can cost a lot of money, depending on its complexity and whether or not you and your spouse need to go to court. The divorce could also have business consequences. Finally, the divorce can reduce your energy and ability to run your business, if you own a business, or work, if you’re an employee.
So how can you conserve funds, or at least improve your financial perspective, given these challenges? Here are some ideas:
1. Establish a budget and track it closely.
Before you start doing things like clipping coupons and foreswearing eating out at restaurants, take some time to understand how you really spend your money. This knowledge will give you insights about how to get your finances under control.
2. Talk to a financial planner.
You would never want to do surgery on yourself. Likewise, you should never try to master complex financial planning tasks on your own. Get help from someone who is qualified to assist people going through divorce.
3. Focus on the “80/20” in your budget.
As 19th Century economist Vilfredo Pareto once showed, 20% of inputs into certain systems in nature lead to 80% of the outputs. Imbalances exist everywhere, including in personal financial systems. Bearing that in mind: what elements in your budget are causing 80% of the drag or friction on your finances? Work on those “big problems,” instead of getting distracted by little issues that won’t have a big effect on your bottom line.
4. Get legal help with your divorce.
Call the team here at the Toussaint Law Firm, PC, today to schedule a free and confidential case consultation.