Life Continues After Divorce - How To Budget Your Money Simply After Divorce

You are now divorced, you have never done a budget before or, did it jointly with your spouse, and now you have to do it yourself. You will probably have less income and you may have to change your lifestyle. This can be scary.

According to the latest divorce statistics from DivorceMag.com:
• There were 71,269 divorces in Canada in 2005, or a rate of 220.7 per 100,000 population.
• Around 43% of women have a decrease in household income within two years of a separation or divorce; the figure is only 15% for men. The same study finds that 29% of men have an increase in income, as compared to nine percent of women.
• Divorced women with children are four times more likely than married women to have an income that is under the poverty line.
• A single mom is nine times more likely than a married woman to have an income that is less than half the official poverty line.
• Although 10% of families in the U.S. are headed by a woman, 40% of poor families have a female head of household.

So, how do you make sure you don't end up another poverty statistic? Since you have little control over the amount of money that comes in, you have to control the money that goes out. Budgeting keeps you on track to make sure you are living within your means.

Follow these simple budgeting guidelines as soon as possible to avoid getting into debt and compromising your future:

Step 1: List all your current income streams.
• employment income (salary, commissions, tips, bonuses)
• rental income
• alimony
• child support
• investment income
• etc...

Step 2: Make a list of all of your regular monthly expenses.
Track your expenditures for a few month. Record every cent that you spend. Use cheques, receipts, credit card bills. It's important to know where your money goes before you set about building a realistic budget.

Step 3: Compare your income to your expenses.
When you compare your income to what you currently are spending, you may see a noticeable lack of balance. The hardest part for most people is controlling their spending. If you cannot control your spending then no matter how much money you make it will never be enough.

Step 4: Stay on budget and avoid new debt.
Avoid extra stress by staying on budget. Financial problems bring stress, and avoiding that stress may make it easier to give up things you can live without.

And for even more budget information, I invite you to claim your Free 4 Day Email Mini-Course at: http://www.LifeContinuesAfterDivorce.com

Because we all deserve to be financially free.

From Carol Ferguson - Your Friendly Budget Gal and LifeContinuesAfterDivorce.com

Statistics Source: http://www.divorcemag.com