By Suzanne Cramer, Certified Credit Counselor
Divorce takes its toll in many ways; financially speaking, a divorce can be devastating and it's important to make your financial health a priority. Many things will be changing with your finances as you go through your divorce and for years to come.
To better prepare yourself for your future it's important to take steps to save for retirement, emergencies, and goals you may have. Saving is an intricate piece of your financial puzzle and needs to be re-evaluated post divorce.
As a couple you and your ex hopefully had a savings plan in place for retirement, emergencies and future goals, but with divorce, your needs will most likely change. Let's find out if you are financially on track.
Have you figured out what you need to retire?
Many of us haven't, according to the Retirement Confidence Survey, Only about four out of ten of us have tried to calculate what it would take for a comfortable retirement, and one-third of those who have can't remember what figure they came up with. Without knowing how to get where you need to be how can you develop a plan to get there?
CNN Money offers a simple yet effective retirement calculator to help you determine what you need to save today for your future.
Do you save a portion of your income regularly?
According to MSN Money the current U.S. savings rate is below 1 percent; are you part of that 1%? If so, let me stress to you the importance of saving at least 5% of your income; coupled with investing you can continue to grow your nest egg for a comfortable retirement.
Do you pay off your credit cards every month?
Carrying a balance on your credit cards is a dangerous trap to fall into. That balance may be costing you more than you think each month in interest and fees.
Responsible credit card use involves paying off your balance each month and making timely payments, failure to do so results in higher interest rates and late fees.
If you are currently only paying the minimums or are getting behind on payments now is the time to develop a plan for paying down your debt. If you are not sure how to get started consider reviewing this article on your debt relief options.
Are you protecting what you have?
After divorce it is imperative that you review all of your insurance plans and make any necessary changes.
• Health insurance
• Life insurance
• Auto insurance
• Homeowners or rental insurance
Today millions of Americans are without health insurance or adequate coverage; the financial losses suffered by an unexpected medical emergency are enough to frighten anyone.
Are you taking the right steps to achieve your financial goals? Saving is not always easy especially when a divorce changes everything. Making savings a line item in your budget will help you to pay yourself first and help prepare you for the unexpected and your future.
BounceBack.com helps people find happiness in the right relationship. If you've been through a breakup, divorce, or just haven't been able to find happiness in your love life, BounceBack is a place to tell your story, get community support and advice from experts, and find the confidence and strength you need to move forward. Check out our Facebook page.
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