How to Manage your Finances After a Break-up
While the rate of divorce in England and Wales may have fallen by 9.1% between 2014 and 2015, an estimated 42% of marriages still end prematurely in the courts.
This represents a painful emotional experience, and one that can distract you from everyday challenges such as work, parenting and managing your finances.
This can be true of any serious break-up, and the concern here is that people may begin to lose control of their lives during the process of separation.
Here are some steps to help you manage your finances after a break-up:
- Reconsider your Living Arrangements
Presuming that you shared accommodation with your loved one, you may well need to find a new place to live following a break-up.
The issue here is that you’ll need to lower your expectations when searching for a new home, as you’ll only have half of the available income to cover rental costs. This requires you to manage your expectations and create a revised budget to identify viable properties within your price bracket.
Conversely, you could stay at a friend or family member’s house for a short period of time, as this will allow you to accumulate savings and improve your accommodation prospects.
- Do you Need a New Car?
If you and your partner were a one car family, you may find yourself without a vehicle following a break-up. This can be extremely limiting, particularly if you rely on a car to make your way to work every day.
Your immediate response may be to solve this issue with a loan, but this is by no means your only option.
Instead, see if you can secure a lift with a colleague on the way to work, or perhaps consider cycling as a way of reducing short-term costs. This will also prevent you from taking on additional debts, which may prove unmanageable given your new circumstances.
This approach will also enable you to save money or improve your credit score as you prepare to invest in a new vehicle.
- Do Not be Afraid to ask for Help
On a final note, it’s easy to panic and enter into a period of depression when you first experience a break-up.
This can cause you to become anxious and isolated over time, preventing you from seeking out the help that you may desperately need.
Overcoming this is crucial, however, as everyone can understand the pain associated with a break-up and your loved ones will be happy to help you through these difficult times.
So whether you need emotional, psychological or financial support, there’s no shame in reaching out to those who are closest to you.