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Making room for retirement in your post-divorce budget | Columbus ...

During and after divorce, many Columbus divorcees soon discover that they must make significant changes to the lifestyles they were once accustomed to. Married couples often share the responsibility of paying for expenses and saving for the future, but as a single person, an individual must solely rely on his or her income to make ends meet.

Typically, this is a difficult adjustment for many newly divorced individuals. Some have never had to balance a checkbook and others may not know how to create an effective budget. Although it may take some time before Columbus divorcees become financially independent once again, experts are urging the newly single to also focus on saving for retirement, even if that means making other sacrifices in one's budget.

"Pay yourself first," is the motto of one certified divorce financial analyst. She explains that although it may be difficult to achieve financial independence shortly after a divorce, one should never forget to also plan for financial independence after retirement. Divorcees may be more concerned about making ends meet month-by-month, but they also have to consider how their decisions now will affect their financial stability during retirement.

Creating a budget that is effective for meeting both short-term and long-term financial goals may be overwhelming, but there are several simple tips that can help any newly divorced individual to get on the right track.

First, individuals should take advantage of company match programs and making contributions to their IRAs.

Once contributions toward retirement accounts are included in one's budget, the individual should then assess their new lifestyle as a single person. Is the individual living above his or her means?

In some cases, an individual may need to make adjustments to his or her lifestyle. This could mean choosing to cook more instead of going out to eat or working out at home instead of paying for a gym membership. Living below one's means will also help an individual to build an emergency savings account.

Divorce is already an emotionally difficult process for many Columbus residents, but understanding how to get one's finances under control while also saving for the future can help take the edge off of one's worries.

Source: Daily Finance, "Retiring Solo: Too Many Singles and Divorcees Aren't Saving Enough," Catherine New, Sept. 14, 2011

Source: http://www.columbusfamilylawattorneyblog.com/2011/09/making-room-for-retirement-in-your-post-divorce-budget.shtml

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