New Year, New You: The Financial Edition

The new year is around the corner and you may be starting to think of goals you want to accomplish next year. If you are navigating your first divorce holiday season, are post-divorce, or just thinking of divorce, you may be looking for ways to do things better in the new year.

Finances are a particularly difficult part of most divorces. You may be struggling with paying bills, unsure of whether your going to receive support payments on time, or preparing to go back to work after taking some time off to raise children. Whatever your situation, I've got some tips that can help set you up for a better financial future.

Now, don't worry! You don't have to do all of these. Pick and choose what works for you. And most importantly, don't get down on yourself for not doing some of these things. It's about progress, not perfection. Anything you can do to improve your finances (no matter how small) is a great step in the right direction.

Create an Emergency Fund

The Why: Your emergency fund can serve as a financial safety net for unforeseen expenses, emergencies, job loss, and any other unexpected financial crisis. 

The How: The goal for your emergency fund is to save three to six months worth of living expenses. If this seems impossible now, know that each little bit counts. Start by setting up automatic transfers to your savings account, even if it's only $10 at a time. You could also use a passive means of saving (like Acorns, for example) that invests spare change from purchases. 

Debt Reduction

The Why: Reducing your overall debt, especially high interest debts like credit cards and personal loans, can help free up your finances for your future goals.

The How: Get a full understanding of your debt picture. If you haven't already, now is the time to run your credit report and see all of your debts. Make a list of what you owe, the monthly minimum payments, and the interest rates.  Target the highest interest debts first and go from there. While it may feel daunting in the beginning, once you make progress on one debt, you can continue your momentum. 

Retirement Savings

The Why: Whether retirement is right around the corner or far off, saving for it is crucial for financial security throughout your life. 

The How: Set aside a percentage of your income each month in a retirement fund. Be sure you are taking advantage of any "matching" that your employer does. You don't want to leave money on the table that could be yours. 

Budgeting

The Why: I have saved my best tip for last. Creating a budget that you can stick to is the key to your financial future. Knowing how, where, and when your money is going out can help you set your goals and get where you want to get financially. Without a budget, you may be going into unnecessary debt, not saving enough, and spending more than you realize. 

The How: I have a FREE budget tool to help you figure out your finances, set up a budget to live by, and get to your financial future faster! Click here to access the free Home Budget resource. 

Keeping Your Future in Focus

If you have not handled your family's finances before or overall need help understanding your finances, let me help you navigate this important part of your divorce with the Divorce Money Guide. With easy-to-follow steps and checklists, you will have a handle on your finances, goals, and your future before you know it. 

Here's to a great new year and active steps to help you get there!