Financial Tips for Divorced Women
Financial independence is not something reserved for men; all women should understand the need for financial independence. Whether you are ending a marriage after working as a stay-at-home mother or if you have a career, this blog can help you get the road to financial freedom.
- Set Goals: Your financial goals can be short term or long term; it all depends on your personal needs. Perhaps you want to save enough money to purchase a house or a car. Maybe you want to retire by a certain age. As you set your goals, make sure you are specific about how you plan to achieve them.
- Review Your Finances: Organize your finances by writing down your annual income and subtracting annual expenses and liabilities. List your assets, which could include life insurance, your home, investments, artwork or fine jewelry. Once you have calculated your net worth, you can start to allocate assets.
- Asset Allocation: Asset allocation is an investment strategy used to balance the risk and reward. While there isn’t a simple formula for how you should allocate your assets, investors recommend using different types of investments based on your financial goals. If you are hoping to meet your goal in five or more years, stocks are recommended. If your objective is than a year away, you should consider cash and money market accounts. Bonds can fall somewhere in between or be more of a long-term investment.
- Watch for Results: Financial planning will change as your needs, goals and objectives change throughout your life. You want to make sure your investments are growing as planned and still meeting your needs, which is why you should thoroughly monitor your portfolio twice a year.
Understanding how investing works can help you set yourself up for financial success through retirement age. If you need legal assistance accessing assets divided during your divorce, contact our Collin County divorce attorney today. (940) 293-2313