Clearly, women need to be concerned with their financial independence. Let’s jumpstart. Write down your expenses like house/room rent, food, utilities, transportation, and medicines(if you take any on a regular basis). These are the most important recurring expenses for your budget. This list will give you a picture about what you need to pay and in what form.
Figure out your expected income for every week or month. If your bills expenses are more than your expected income, you have two options to follow: either you need to work extra or cut down your existing expenses as much you can. The latter is difficult to practice.
To live life as a divorced woman cutting back on expenses is a good way to save money. There are many ways a newly divorced woman can save money and improve her financial situation.
Do the following until you reach a better finacial position:
- We spend quite a bit of money on phones and internet. Switch to a lower plan for your cell phone and go back to dialup for the internet facility until you are able to afford high speed again.
- Stop eating out, prepare your own food.
- Rethink your shopping strategy by shopping for items you need. Also look for sales and bargains.
- Avoid using credit cards frivolously. Use credit cards as little as possible and only when it is necessary
- Wear only ‘machine washable’ clothing to avoid paying dry cleaning bills
Money Basics For Life After Divorce
You have the power within you to create abundance, wealth and unlimited prosperity. You do not need to live in fear of the future.The sooner you begin putting your financial house in order, the brighter and stronger your financial future.
Pick up skills
If you were a homemaker before your divorce and have little job skills, you can go to night school to learn a new trade, take online classes, sell home crafted items online, write and get paid to do so, run a daycare, start a pet grooming service, etc. The possibilities are endless.
Like their male counterparts, women should spend some time enhancing their investment knowledge before they invest their money.
To reach financial independence women should do the following:
Begin the first steps toward financial independence.
- Money management begins with the belief that you can manage money. Look at income, debt, savings and monthly expenses and determine where you stand presently. If the reality of it all feels frightening or depressing, acknowledge it. Feeling helpless is nothing wrong but it is just a phase and you will quickly come out of it.
- Believing in yourself will attract the right opportunities and people into your life. If believing in your ability to thrive is a little shaky then begin by reading, listening and working with self-development materials. This personal inner work is just as important as the outer work.
- Now that you have a clear picture of the present, itâ€™s time to set your sights on the future.
Yes itâ€™s time for some monetary goal setting.
Your financial goals may be short term or long term. Investors should keep three rules in mind when setting goals:
- Be specific.
- Be realistic (have patience)
- Be disciplined (make a habit)
Organize Your Finances
Write down your cash balance at the beginning of the year like: your expected income for the year, income tax return, estimated savings and investments, your annual expenses etc. If you calculate your net worth annually, you can monitor the growth in your personal wealth.
Allocate Your Resources
Once you know how much money you are able to invest, determine the structure of your portfolioâ€”that is, how much should be invested in stocks, how much in bonds, and how much should remain in cash.
Select Your Investments
Keep in mind that a portfolio structured with some combination of stocks, bonds and cash is most likely to be well positioned to achieve the maximum return with the least amount of risk
Monitor Your Results
Financial planning is an ongoing process. Understanding investments and establishing a regular investment program are essential to successful financial planning for all investors.