When life is changing rapidly around you, inertia may make you want to keep everything possible the same and under your control. However, not taking action now could be costly both financially and emotionally. Saving money during life changing events may be easier than you think.
Rightsize
Instead of continuing to live in a big house, now may be a good time to right-size your living arrangements. Selling the house might break your heart but keeping it could break your budget. Move into the smallest size place that can accommodate your needs and save the difference. Not only will a smaller place have a lower monthly payment but you’ll also have lower utility bills and upkeep costs. If your car has a pricy monthly payment, consider selling it and buying used with cash. You’ll eliminate a bill and your car insurance expenses may decrease as well.
Adjust Withholding
Take a close look at the withholding on your paycheck. Are you paying for a family medical plan even though you’re now single? Are your taxes being calculated as if you were married with a dependent? Head into the human resources office and adjust your federal and any other applicable withholding. You may be able to keep more of your earnings.
Cut Off Access
Assess your financial accounts and make sure that no one is running up bills in your name. You may need to remove someone from your family calling plan, take off their name as an account holder on your credit cards and remove them from having access to your health-related information.
Find Affordable Legal Representation
According to Mark A. Erickson, a child custody lawyer in San Jose, life changing events can be made easier through the support of a qualified legal representation. However, a reduction or loss of income can make it difficult to afford an attorney. Look to legal clinics, social service agencies and through your personal network to find a divorce attorney, family law specialist or child custody lawyer.
Choosing Battles
Not everything is worth fighting over. Attorneys generally bill by the hour. The more that you can come to an agreement on before hand can reduce your legal expenses. Let the spouse keep the big boat with its costly monthly upkeep. You’ll enjoy a lower cost of living and less stress.
Life changing events don’t always have to be negative if you approach them with a positive, can-do attitude. Taking action now can help protect you financially and prepare you for new and better opportunities ahead.