Managing your finances post-divorce can feel daunting, but building a budget is a powerful way to regain control and set yourself up for success.💪👏 Let’s break it down step-by-step:
Know your income
Start by calculating your monthly income. This includes your paycheck, child support, spousal support, and any other sources of income. The goal is to know exactly how much money you have coming in each month.
💡 Pro Tip: Pay attention to how often you get paid. If it’s weekly or bi-weekly, calculate how much needs to be set aside from each paycheck to cover bills. For example, if rent is due on the 1st, plan ahead so the funds are available.
List your expenses
Brainstorm and list out all of your monthly expenses. Start with essentials 👉
- Housing + Utilities – Mortgage or rent, electricity, gas
- Transportation – Car payment, insurance, gas
- Food – Groceries, household goods
- Insurance – Health, dental, life
- Debt payments – credit cards, loans, medical bills
- Children – activities, clothing, tuition
- Misc – anything not covered above?
Make sure to include all of your “wants” as well. Some “wants” include subscriptions (media, clothing, music), dining/drinking/entertainment, health and wellness activities, hobbies, and misc shopping. Your goal is to create a realistic, livable budget – NOT deprive yourself of joy, fun, and luxuries.
đź’ˇ Pro Tip: A spreadsheet is your best friend. Tools like Google Sheets or Excel can help you organize and calculate totals automatically. Apps like Mint or YNAB can track everything in one place.
Prioritize “Needs” vs “Wants”
If it’s necessary to scale back on your lifestyle during this time, then you’ll want to get a handle on what you really need to live the life you want.
With your list of expenses in hand, separate the “needs” (essentials) from the “wants” (extras). “Essentials” are the non-negotiables that keep you housed, fed, and insured. “Wants” are the things that make life more fun or comfortable but aren’t necessary for survival.
Take a close look at the wants and decide what you are willing to scale back on temporarily. Notice where you aren’t. The goal of this exercise is for you to be honest with yourself – no one benefits from anything less!
💡 Pro Tip: Remember, what you choose for today is NOT what you are choosing for forever. It’s about creating stability now so you have the freedom of choice later.
Balance income and expenses
Subtract your total monthly expenses from your total monthly income. If you end up with a positive number, great—you have money left over for savings or unexpected costs. If the number is negative, it’s time to make adjustments. Look at your “wants” first for opportunities to cut back. If that’s not enough, see if there are ways to reduce your “needs.”
Make adjustments accordingly
If you’re overspending, don’t panic—it’s common during the post-divorce adjustment period. The key is to identify where you can make changes:
- Reduce spending or increase income
- Tap investments
- Reassess expenses
đź’ˇ Pro Tip: Work with a Certified Divorce Financial Analyst, financial advisor, or other finance professional. This is what they do and they are there to support you.
Monitor and update
Once you’ve created your budget, stick to it—but remember, budgets aren’t set in stone. Life happens, circumstances change, YOU change. So review your budget regularly and adjust as needed. This may require constant tweaking so don’t feel like you are failing if you need to revisit often!
Adjusting to your new financial reality after divorce isn’t always easy AND it is an opportunity to take charge of your future. Your budget doesn’t just track your money → it gives you control, confidence, and clarity as you start this new chapter.
Take it one step at a time, be patient with yourself, and remember: Every small win is a step toward the stability and independence you deserve.
🚨 Get Me Outta Here 🚨