by
Carl Hampton
08/04/2006
Almost half the letters I receive daily are
from recent divorcees and for the most part
their stories go something like this!
“The cost of my recent divorce has eaten
up almost all of my 401(k) and I have been
left deep in debt. I still own a home,
although there is no equity left in it. I
recently made the mistake of leasing a new
car with insurance and lease payments that
are the size of my house mortgage. I'm still
employed, have a pension plan, am making
about $60,000 a year, but have to make child
support payments. I now need to start over,
but don't know where to begin. Can you
please give some direction, as I feel I'm
going around in circles.”
As you can see, most sound like a parody for
a country music song. The only thing missing
is the dog running away. Now let’s focus
on the positive side and there's always a
positive side. You still have a job.
You’re making a pretty good salary and if
you're really willing to make a concerted
effort, you most certainly will be able to
rebuild your finances and regain some
financial security.
I ALWAYS SUGGEST THIS SIMPLE THREE-STEP
PLAN:
Set Yourself A Budget You Can Live With:
Sit down and write out all your expenses,
also list your priorities. You should start
by figuring out how much you've got to spend
on essentials. This would include home
loan/rent, food, utilities, health
insurance, car note payments and most
definitely, those child support payments.
Now it's time to start looking at ways to
cut back. Do you really need premium cable?
Do you really need to eat out as often as
you do? Brownbag it a few days a week at
work? If you really want a fresh start,
you'll identify some ways to scale back your
lifestyle.
Start A Savings And Investing Program:
Once you've got a handle on your budget, you
really need to focus on rebuilding your
wealth. It's my experience that the best way
to do this is to make arrangements for the
money to go directly from your paycheck or
checking account into some sort of
investment account. This ensures that the
funds actually end up in savings rather than
being diverted into some purchase or another
that always seems like a good idea at the
time. To use a familiar term, “investing
for our long term future is a marathon not a
sprint” please do not put it off until
tomorrow because, “Tomorrow Never
Comes”.
Stay Positive:
If history is any guide, one of the biggest
dangers to recent divorcees is that the
combination of emotional and financial
stress caused by the breakup of a marriage
can be so overwhelming that it leads most
people into a sense of hopelessness, a
feeling that you've fallen into a hole so
deep, you'll never be able to claw your way
out. That's understandable but you need to
remember one thing, the only person who can
change your life is YOU. That’s why it's
very important that you begin taking action
now! Don't procrastinate on that budget and
starting that savings program today! The
moment you see things beginning to look up a
little, you'll start to regain a sense of
control over your life.
Once that happens, your life can begin to
seem less like one of those heartbreaking
country music songs and more like that
famous track on the 'The Beatles' Sgt.
Pepper album - "It's Getting Better All
The Time."
Have an opinion or a question you would like
me to answer, then write me!
http://www.CarlHampton.com
