A study by the US Social Security Administration shows that over 20 percent of divorced women over the age of 65 are impoverished. While it is statistically true that more women suffer financially than men following a divorce, women can empower themselves to gain financial independence and stability faster by planning for their financial future.
Women are often not involved in the family finances, and this leads many divorced women to be fearful of financial failure and intimidated by the process of organizing their finances. Here are some tips to help divorced women get past the fear and start enjoying being in control of their financial fate:
- Don't rely on support - If you are receiving spousal support, that's great. But remember, it's probably temporary and can be modified or canceled if your ex's circumstances change. Learn to live without it, and if you can, stash it away in a retirement account or your kid's college fund.
- Create a budget - Create and maintain a detailed and accurate household budget. One way to track your spending is to make a record of every single purchase, from cars to coffee. This goes a long way in helping you create a realistic budget based on your actual expenses.
- Invest in your career - If you need to finish school, get a postgraduate degree or get some technical training, do it now. The sooner you invest in a higher-paying career, the longer you will have to work in that field. Also, put some money aside for wardrobe improvements and professional resume or career counseling.
- Take inventory - Make a detailed list of your assets and see how that list is balanced. Be certain you have provided for your retirement and that you have adequate insurance.
- Talk to professionals - Consult with an accountant, financial planner, probate lawyer, career counselor and any other professional who can help you sort out your finances.
- Plan for your future - Decide at what age you wish to retire and plan accordingly. If you have young children, start planning for their higher education, weddings, baby funds or anything else you hope to help out with.
Gaining and maintaining control of your finances does not have to be intimidating. Divorce attorney Steven M. Bishop wants to help you get on your financial feet and stay there. Call the San Diego office at 619-299-9780 or contact us online.