Some people swear by the financial benefits of a budget. Others say that budgets can cause people to spend even more money because they might feel naturally included to rebel against restrictions. However, if you believe in the strength of budgets or would like to try one, a post-divorce budget might help you prepare your finances for the single life.
Creating a post-divorce budget is important whether you are a breadwinner or homemaker. It is especially important for breadwinners who never managed the household finances and homemakers who have spent years outside of the workforce.
What to add to the budget
Living together is much less expensive than living apart, especially on one income. Once couples separate, expenses can double. USA Today recommends ensuring you include the following expenses when determining your post-divorce budget:
- Everyday expenses, such as gas and groceries
- Transportation, such as a car, cab fare or bus passes
- Accommodation, such as renting an apartment or buying a townhouse
- Insurance policies, such as health, auto and renters’ insurance
How to reduce expenses
If you have spent years living in your home and have children, the idea of moving might not sit well with you. However, larger houses require more maintenance. Consider selling the home and splitting the profit. This is especially worth considering if there are no children. Couples who commit to the equitable division of marital assets and a fast process may also save money on the cost of the divorce.
Even if you decide not to create a budget, knowing what your future expenses will be may help you determine how much money you need to survive on your own. Many people who struggle with money management often also seek guidance from financial experts.