Frugal Living

Single mom’s guide to preventing financial hardship after divorce

When you’ve finally had enough of putting up with all the fighting and the quarreling, you’ll realize that getting a divorce is right for you. Ending your marriage is probably the last thing that you want to do, but you’ve got no choice. There is no point in living an unhappy life. More and more married couples are calling it quits nowadays. There is really nothing to be ashamed of. You never intended to be a single parent, yet you’ll learn a huge deal. As a single mom, you’re not alone. You’ve got your family and friends who care for you and would stop at nothing to make you feel loved. Now, you have the opportunity to start a new life.

Divorce can take a toll on your financial health. All of the money, financial assets, and possession are divided between the former spouses, the result being that the current and future financial situation is severely affected. All of a sudden, you find yourself with half the income, all the bills, not to say that you don’t have any kind of support whatsoever. The longer the separation takes, the more money you’ll have to pay on legal fees. Raising a child is a challenging task for a single-parent family. Yes, but it’s not impossible. With enough discipline and a decent income, you can make it through the day. Many single parents have trouble paying their debts. With these simple suggestions, you can prevent financial hardship.   

 

Figure out when you can withdraw funds from the joint accounts

More often than not, couples have joint bank accounts. They don’t care too much about maintaining their independence and they end up putting their money together. Having only one bank account offers numerous advantages, like being able to access the money whenever necessary and the ability to deposit funds. This is considered to be the most successful way when it comes to be joined financially. If you and your former partner have one or more joint bank accounts, it’s essential to establish the terms of use. In other words, determine who the money will be used.

At present, women make more money than men do. However, in many marriages, the man is the one who brings home the bacon. Not only do men enjoy steady employment, but also they get to control the finances of the family. This isn’t the case anymore. Until the divorce settlement is finalized, you need cash to survive on. Discuss thoroughly the use of the joint funds. You should be able to withdraw money and use it for your needs and those of the child. If your spouse happens to refuse to cooperate, then take matters to court. Demand a legal separation agreement that governs the utilisation of marital funds.

Save money as a single mom

As mentioned earlier, there are single parents who have a mountain of debt. What do they do to overcome challenges? It’s quite simple, actually. They get IVA help from the specialists. IVA is an acronym and it stands for individual voluntary arrangement. It’s basically an agreement that you make in order to pay off debts over a specific length of time. The rate is more than affordable. If you’re not facing debt, then you can consider yourself lucky. As far as avoiding debt, you might want to keep in mind the following things.

Design a financial back-up plan

Falling into debt is really easy, which is the reason why you need to be careful. You don’t have anyone to count on when your kid gets sick or when it’s necessary to pick them up from school. And neither do you have financial support. Understand that you’re losing out on a great deal of money, either from the separation or from missed work opportunities. There is nothing more important than having a financial back-up plan. If you don’t have a proper plan, you’ll miss bill payments and your credit score will be affected. Develop a solid financial back-up plan. Better yet, design two. It can be something as simple as making a list of people you can turn to in case of an emergency or buying new tires for the car.

Budget like a super mom

Good habits are the ones that keep your expenses below the regular income. What you need to do right now is to create a realistic budget and, most importantly, stick to it. The budget needs to be checked on a regular basis, ensuring that your spending patterns and habits don’t break the rules. There is nobody else in charge; only you. Here are a few budgeting tips you wish you knew about:

  • Use coupons – The likelihood is that going to the grocery store is a great treat for you. If this is the case, you should really be using coupons. You can take advantage of big discounts. To save yourself the trouble, print your online coupons.
  • Get your child involved in the process – Parents don’t discuss money issues with their kids because they believe that they are too immature to comprehend. Don’t underestimate your child. The youngster understands more than they would like to admit. Involving your kid in the process is a good thing because they can help you cut back on your spending.
  • Understand the fees that you’re charged – It’s been a while since you’ve looked at your bank statements. Get your hands on the paperwork and look for unusual fees. Are you being charged more than necessary? The only way you’ll know for sure is to check those bank statements. Become familiar with all the fees and learn how to identify oddities.

Consider downsizing to a smaller home

Can you afford the current rent or mortgage? If the answer is no, you might want to consider downsizing to a smaller home. This will take away some of the financial stress, as you won’t have to pay for the cost and energy necessary to maintain a big property. Relocating isn’t the end of the world. Your kid will love the change of scenery. As for you, you can make some money out of the sale. In another place, you may even find a job opportunity. Run the numbers and see if it’s the right decision. If downsizing makes financial sense, you should do it.  

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