There’s no question that divorce can be a financial setback for women. But with careful planning and execution, it doesn’t have to be. In fact, divorce can be an opportunity to build wealth and achieve financial independence. Here are some tips for women who are looking to rebuild their finances after divorce.
Get a handle on your finances – know what you have, what you owe, and where your money is going
Women who have gone through divorce need to be especially aware of their finances, so they can take the necessary steps to begin the journey towards an improved financial standing.
It is important for women in this situation to get a handle on their finances by getting an accurate account of what they have, what they owe, and where their money is going.
With this information women will be able to make strides to rebuild their wealth in no time at all; some helpful tips that women may find useful include making a budget, investing in assets, and not turning to quick fixes like consumer debt.
Lastly, women should always stay informed on personal finance topics including credit scores and consumer debt so they can ensure continued financial success post-divorce.
Build up an emergency fund to cover unexpected expenses
Women who are recently divorced should make it a priority to build up an emergency fund. An emergency fund can provide women with financial security and peace of mind during a transition period.
It can also help women increase their financial independence and protect their wealth when facing unexpected expenses. Having access to funds will put women in a better position for long-term wealth building, helping them lay solid foundations for future success after divorce and beyond.
While the sometimes painful process of divorce may set women back financially, establishing an emergency fund combined with other effective wealth building tips for women after divorce will positively shape overall progress towards achieving financial freedom.
Invest in yourself – take courses, learn new skills, and grow your career
Investing in yourself can be especially important for women who have gone through a divorce. It’s common to feel overwhelmed, lost, or confused about your finances during this time.
But learning new skills and taking courses can help you create goals and build wealth. If women after divorce put in the effort to invest in themselves by taking or completing something related to their career goals, they are more likely to experience positive long-term results that set them up for success well beyond their divorce.
Knowing the right wealth building tips specific to women after divorce can be monumental when it comes to creating independence and financial stability.
Live below your means – this will help you save money and get out of debt quicker
As women can be hit particularly hard by divorce due to the changing financial dynamics, one of the most important wealth building tips to follow is to live below your means. This advice can be applied regardless of what stage women are in life, as simply being mindful of spending less than you take in will contribute to a stronger financial future.
Living below your means helps women save money and get out of debt quicker, which greatly increases their options when it comes to budgeting, investing, and overall financial planning.
There is nothing like having the security that comes with extra savings tucked away for a rainy day– women should never underestimate the power of living on less than what they bring home for themselves and their family each month.
Make a budget and stick to it – this will help you stay on track with your finances
Women going through divorce often struggle to figure out how to manage their new financial circumstances. With limited resources at their disposal, it’s critically important women create a monthly budget and follow it closely as a key wealth building tip after divorce.
This will help women stay on top of their situation by tracking income and expenses, so that there are no surprises or losses. With budgeting, women can set achievable goals for the future and can start taking control of their financial wellbeing in this new phase of life.
Talk to a financial advisor about your goals and how to best achieve them
As a women who recently endured a divorce, it’s important to talk to a financial advisor about your goals and how to best reach them. Financial advice tailored for women is increasingly becoming more available and beneficial for women as they look to rebuild their lives after divorce.
A financial advisor can provide helpful wealth building tips that are specifically designed for women’s unique financial needs and challenges. By talking with a qualified financial advisor, women can feel supported and empowered while they take control of their finances and achieve both short-term and long-term goals.
Following these wealth building tips for women after divorce will help you get your finances in order and start building long-term security. It’s important to take control of your money and make sure you are making the best decisions for your future.
Erika Finn, founder of Stacking Acorns, is an attorney who graduated from law school at University of California, Berkeley. She was a member and editor of the California Law Review and won the Prosser Prize for Legal Accounting. She holds a Master’s Degree from the University of Southern California (USC) and a Bachelor’s degree from Indiana University- Bloomington. Stacking Acorns is a personal finance website for women by women. We help mid-life women achieve financial freedom through real estate investing and other streams of passive income.