Steps to Financial Freedom down2basics: What steps are you taking to obtain your financial freedom after weathering the storm of divorce?
What "clean up" tactics are you using?
Are you going through any credit agencies?
What are you doing to secure your financial freedom once more?
d2b
Re:Steps to Financial Freedom atd74: D2B,
Good thread! This hits close to home for me because my ex was so greedy, money hungry and materialistic. I was the saver and he was the spender - big time spender. I would save and thus he would spend. I never felt financially secure with him. He thought it was ok to rack up the credit card bills and pay them off with the income tax return - I on the other hand always thought it would be nice to be able to save the return for a vacation and put the rest in the savings account.
My ex was layed off for the last year and 2 mos of our marriage and thankfully I had a very good paying job throughout that time (which I myself just lost). There couldn't have been a better time for me to have to loose a job than now. I am living at home for the time being until after Christmas and then moving out on my own. Thankfully we didn't go bankrupt, had all the bills paid for and nothing was repossessed. The credit card bills became no more as I was able to pay them off with my paycheck and his unemployement.
With the sale of our home we made $16,000 - half of which is mine. I was so happy to have that money (even though all of it should have been mine...) I put it right in the bank the day after we got the check. In between that time that I banked that $8,000 I made a point to start putting $250 each pay period into that savings account.
I was determined to save that money and never be financially unstable again and without my ex this is a very easy thing for me to accomplish. Since the end of April I have been able save an additional $4000 towards a condo. I am so thrilled!
I am not so happy to loose the very good paycheck I make but know that I will find another job and continue to keep saving what I can (even on unemployment). I control the credit card (the 1 that I have) and make sure I don't charge any more than I can afford to pay off in a month.
Even though I have always been a good saver and financially responsible being with someone who was not taught me how to be even more so financially stable. I am rolling over my 401K which is a good amount of money into an IRA and opening another IRA to start saving towards retirement (besides the money I will continue to save towards a house and emergency fun).
My ex went bankrupt a few years before he and I even met and I would not recommend this route to anyone unless it is absolutely necessary... it takes so long (at least 7 years) to get your credit back in good standing and you get gouged on interests rates.
Re:Steps to Financial Freedom newman4ever: The only steps I needed to take was getting my ex-wife out of my life. Now I send her the same amount each month (alot less than she used to spend of my money). I know exactly what she's gonna cost me, and not a penny more.
Amazing how much things can change when you only have to budget by yourself and not account for another persons spending habits.
Re:Steps to Financial Freedom EfemII: I guess I'm the spender of the crowd. I used to put stuff on the cc and let the balance build up. That was one of my shortcomings... I'm interested to hear about what others do to discipline themselves every month.
I have a nice 401k built up and my savings hasn't been touched, but I find myself spending frivolously in my checking account.
I haven't bettered myself since my divorce and would like some help in how others have succeeded.
thanks,
Dave
Re:Steps to Financial Freedom newman4ever: Hey Dave,
I'd suggest you look hard at yourself and realize a few very important things....
Firstly, you say you've built up a nice 401k and have a savings you haven't touched, but that you're carrying a balance on your credit cards. BAD MOVE. Why carry a balance in accounts that pay you minimal interest while paying HEFTY interest on credit card debt. The first thing you need to do is get rid of your credit card debts..even if it means paying them off with your savings. It just doesn't make sense to save in one account, while paying off high interest debt in another.
The next thing you need to do is realize that you probably spend money to fill a need that isn't being met somewhere else. Impulse spending is a very self-destructive habit and can lead to real big problems down the road. Find other outlets to gain satisfaction besides spending needlessly. You need to find the causes that trigger your spending and put a stop to them.
I'd advise you read some good self help books to gain a better understanding of why you have some of these behaviors. I'm reading a book right now that is very good by Anthony Robbins called "Awakening the Giant Within". It explores alot of these issues and helps you find ways to overcome these pitfalls. I recommend it highly.
You need to realize that EVERYTHING we do is based on pleasure & pain. You need to try and change what you associate with pleasure (ie. spending)...and what you associate with pain (ie. saving) It can be done but it takes work.
You can accomplish more than you ever imagined if you put your mind to it. Never underestimate the power of the human spirit because you can accomplish great things with a better understanding of yourself.
Good luck.
Click More for the next page.
