Not only is divorce emotionally trying, it can also impact your finances. That’s why many divorced couples in California find themselves in debt after divorce, either due to splitting up assets or as a result of child support payments. There is hope however, as explained by USA Today. The following tips can help you recover your finances post-divorce and make your way towards a bright future.
Keep goals small at first
If you’re badly in debt, tackling the entire problem can be overwhelming. Starting with small goals allows you to chip away at debt while also building momentum for your larger goals. For instance, focus on creating a small savings account or paying more than the minimum amount on your credit cards each month. Once you achieve these goals, move onto other ones.
Cut back on unnecessary spending
While working on savings, also look for ways to cut spending. For instance, if you incur a lot of entertainment expense each month look for areas where you can cut back. You could eat out less or make coffee each morning to bring to work. You can also cut back on purchases for clothing or other items unless they’re absolutely necessary.
Increase your income
You can also look for ways to increase your income. Having a yard sale, taking on extra hours at work, or picking up a part-time job are all great methods of digging yourself out of a financial hole. This is especially true if you need to make an expensive purchase. Instead of using credit, which will only increase your debt further, earning more money will allow you to buy what you need without causing future financial harm.