Experiencing a divorce engages a spectrum of emotions and life changes that can be tough to navigate. Financial issues may compound the matter. Financial issues can involve becoming a custodial parent later in life and contending with footing bills for the education of children, or caring for ailing parents. A recent story in the Chicago Tribune cited Demos, a public policy organization, found that “Americans over 50 are struggling with a surprising amount of credit card debt.” Credit card debt, emergencies, and careless spending habits combat a sense of financial security, but there are several ways to prepare for a change in income:
Stop using credit cards;
Create a budget;
Start an emergency fund;
Stop creating additional debt. Credit cards are often used to bridge income gaps, but living within your means will lessen financial stress over time. Put a budget in place to track income, debts and living expenses. A detailed, written financial account will illustrate plausible areas for budget cuts. You may have to let go of or downgrade some activities or common purchases for a season. Establish a fund to cover unexpected incidents such as emergency health care and car accidents. For example, if you have a $1,000 deductible for repairs due to an accident, you should plan to have enough in your emergency fund to cover the expense. Having such a fund greatly reduces the need to use credit cards. An emergency fund should be part of a personalized contingency plan for individuals and families. Always look for discounts on grocery items and any other goods or services you require. There are several reputable coupon and deal-based resources available on the Internet and through affiliations with organizations and companies. Think about what you need and take time to research how to get it for less. Preparing for a divorce is stressful enough. Be proactive about budgeting before it happens and contact Roscich & Martel, experienced and accomplished family lawyers in Naperville, Illinois to handle the details of your divorce. Your future depends on your plan. Let us guide you today.