Navigating life after a significant change, such as divorce or the loss of a spouse, can be overwhelming, especially when it comes to managing finances. Les Szarka, CEO of Szarka Financial, provides three essential tips to help you regain financial control and ensure stability during this challenging time.

1. Manage Your Cash Flow

The first step is understanding your new cash flow. Significant life changes can drastically alter your income. For instance, if you’re a widow, you might lose a portion of social security or pension income. If you’re divorced, you might be adjusting to a single income. It’s crucial to assess your monthly expenses and compare them with your current income to ensure you can comfortably cover your bills.

2. Assess Your Housing Situation

Next, evaluate your housing situation. Consider whether it’s feasible to maintain your current residence. If you own a home, think about the costs of property taxes, utilities, and maintenance. In many cases, selling the house and finding a more affordable living situation might be the best decision, especially if you’re ‘house rich but cash poor.’

3. Take Inventory of Your Assets

Lastly, take a thorough inventory of your assets. This step is vital whether you’ve inherited everything or are dealing with divided assets post-divorce. Understanding your financial position will help you make informed decisions about your future lifestyle and financial goals.

Bonus Tip: Update Your Legal Documents

Ensure your legal documents reflect your current situation. This includes updating your will, trusts, and beneficiary designations. Many people forget to remove ex-spouses from these documents, which can lead to complications.

Conclusion

Adjusting to life as a newly single individual is challenging, but with these tips from Les Szarka, you can navigate your financial future with confidence. For personalized advice, consider reaching out to Szarka Financial.