How do you financially start over after a divorce or becoming a widow?
After a divorce or death of a spouse, women face the daunting task of reevaluating their finances. Employment income, Social Security benefits, pension income, and debts such as a mortgage or credit card debts could all be affected. Many women feel they can't afford to retire, but financial experts advise divorced women and widows to investigate their retirement options.
The first step to your financial recovery after a divorce or death of a spouse is to set goals. If you're ready for a fresh start, determine a budget and stick to it, even if it's tight at first. After that, focus on paying off your debts.
Next, save enough money for an emergency fund. You can start an emergency fund with as little as $500 and add to it over time.
Finally, focus on long-term goals such as college or retirement. A financial plan can get you on the path to meeting your goals. It can also help you monitor your progress.
Why hire a financial advisor?
Contrary to what you might think, you don't need to be a millionaire or a CEO of a major company to need the services of a financial planner. In fact, many people who work with planners have modest incomes and don't have complicated financial situations.
The earlier you get started, the sooner you can make wise financial decisions based on your goals. Financial planning begins with getting your finances in order. And the sooner you get started, the sooner you may be able to reach your financial goals. Along the way, you'll acquire the knowledge, skills, and experience that will help you work to pursue your long-term goals.
Divorce, becoming a widow, or being a single woman can involve navigating difficult choices but you don't have to do this alone.