Divorce can wreak havoc on your finances, especially if you're a stay-at-home mom who relied on your spouse's income. It is crucial to keep your finances on track. As a Certified Divorce Financial Consultant and Divorce Coach, I have seen firsthand just how overwhelming budgeting can be for single mothers. However, there is no need to panic; with the right preparation, you can plan a budget for the future that will make you feel confident and secure. In this blog post, I'll share some tips to help you prepare your 2024 budget as a single mom.
Assess your current financial situation
The first step to creating a budget is to know where you stand financially. Review your income, expenses, debts, and assets. Create a list of your monthly expenses, including rent or mortgage, utilities, food, transportation, and childcare. Review your bank statements and credit card bills to identify areas where you can cut back. Highlight any expenses that you can eliminate or reduce. Sign-up here to get our free worksheets
Set financial goals
Once you have a clear understanding of your current financial situation, set financial goals for the next year. Start with short-term goals, such as paying off high-interest debt See our blog on paying off debt on the Financial Sherpa or building an emergency fund. Then, move on to long-term goals, such as saving for your retirement or your children's education.
Create a realistic budget
Based on your current financial situation and your financial goals, create a realistic budget for 2024. Be realistic about your expenses and income, and include a category for unexpected expenses. Create a monthly budget meeting with yourself, so you stay on-track.
Increase your income
If you find it challenging to make ends meet on one income and support payments, consider ways to increase your income. Look for opportunities to work from home or start a side hustle. Ask for a raise if you're employed or consider going back to college or taking a class for skills you can learn to add to your resume.
Seek professional advice
Divorce can be complicated, and the financial implications can be significant. Consider seeking professional advice to help you navigate through the financial challenges of divorce. As a Divorce Coach and a Certified Divorce Financial Consultant I can help you understand your options, create a realistic budget, and plan for your future.
Creating and sticking to a budget can be challenging, especially for single moms going through divorce. The most important thing is to start with a clear understanding of your current financial situation and set realistic goals for the future. Remember that you may need to make adjustments to your budget as your circumstances change your budget. Consider seeking professional advice, relying on a supportive community of friends, and avoid feeling guilty or overwhelmed about working toward a brighter future for yourself and your children.
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