Making a budget

For most newly divorced men and women, with or without children, money and finances will feature pretty near the top of the list of things to worry about.

dreamstime_8931.jpgStart with taking stock and working out a budget
The organisation of your finance after divorce can take some time.  Divorce, as so many of us know to our cost, can leave big holes in the coffers.  Money and financial worries may have been a contributing factor in your divorce and you could be in a precarious position where money is concerned.

Making a budget helps reduce the level of worry and stress you may be experiencing because money is tight.  By writing down precisely how much you have coming in and going out, you can see how much you can spend and where you can cut back if necessary.

Make it realistic
Realistic, budgeting may mean that you can actually start to put some money aside for contingencies or luxuries that you have not previously been able to afford.  When working out your budget remember that your income is the amount of money you have after tax is deducted.  Remember to add in any tax credits or other benefits you receive or money from other sources such as income from a rental property.  Calculate your income and your expenditure as monthly amounts.

Your outgoings should include regular commitments such as rent or mortgage payments, council tax, utilities, TV licence, insurances etc.  Then add on day to day living expenses for items like food, transport, eating out and so on.

How does it look?
If your income is less than your outgoings then you need to look for areas where you can cut back on your expenditure. You may find that after drastic reductions in your spending you are still in the red. In this case you will need help to get yourself on track.  Citizens Advice Bureau is a good port of call if you have financial difficulties. The UK Insolvency Helpline may also be able to help. For free advice on debt management visit The Debt Counsellors and also Debt Advice Bureau Online.

last_will_2.jpgCheck your budget regularly
So that you can make changes as your income or expenditure changes.your spending so that your most important expenses are paid first e.g. mortgage, rent, car loan, utilities, council tax etc.  A roof over your head must be top of the list.

Prioritise your spending so that your most important expenses are paid first e.g. mortgage, rent, car loan, utilities, council tax etc. A roof over your head must be top of the list.

If you can, start to save for the future; a pension plan, a house, university fees for your children etc.  If you can't right now then don't stress about that.  You'll get there. 

 

 

 

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