12 Money Tips for the Newly Single
Today’s post, is a guest post from Anne at UniqueGifter.com. Anne loves finding the perfect gift idea that’s on budget. She has been writing about gift giving and personal finance online since 2012, as owner of UniqueGifter.com. Her favourite beverage is champagne and she loves figure skating, even if it’s harder now that she’s not 20!
As someone that has become single recently, I have done a lot of the things that she talks about below. Now that I am reminded, I should probably follow up with the few that I haven’t done yet. Without further ado, take it away Anne!
Even if it’s for the best, ending a relationship can hurt in so many different ways. While most people are discussing the emotional fallout, which alone can be bad enough, conversations around the financial repercussions when ending a relationship aren’t as popular. Hopefully these money tips for the newly single will help you find your footing as you step into this new stage of life.
My Best Money Tips for the Newly Single
The challenges someone who’s newly single faces depends on the financial entanglement they had with their ex partner. Whether or not they lost money separating from them or took on any extra debt in the process also has a big effect on their immediate finances. For example, a couple who’s dating might just go their separate ways and be done with each other, but a married couple will have a lot more to split up.
If you’re leaving a long term relationship or marriage, and especially if there’s kids involved, it can be financially complex when you become newly single. Here’s some tips and things to keep in mind as you navigate your money post break up.
Change all your passwords and security questions
When you’re in a relationship with someone for a long time you get to know each other pretty well. That trust usually extends to sharing your passwords or at least leaving them out in the open. On top of that, they probably know enough about you to guess your security questions to do a password reset.
While your ex is probably not going to do anything even if they have your password, it’s always better to be safe when it comes to internet security. You should also force any banking websites or apps to log out of all devices, too.
Make a detailed list of your debt and assets
Identify what’s shared and what belongs to just you. That way you have it to reference as you sort life out and divide things up with your ex. If a lawyer’s involved or you’re going through a divorce you’re going to need all this information, but it’s good to have under any circumstances.
Open up a separate bank account
If you haven’t already, open yourself up a separate bank account that’s just in your name. Do this even if you haven’t physically separated from your ex or are just in the early stages of splitting up. Start moving over all your deposits and bill payments to your new account.
It’s also important to save a backup of any transactions or other information you might need from your joint account, too. Especially if you’ll need those for your taxes.
Get a hold of your physical records
If you have any financial records including past tax returns, make sure to get those when you and your partner split up. If that’s not possible, speak to a lawyer or request copies as soon as possible.
If you run a home business or have other expenss you need to claim on your taxes, make sure to get copies of bills and receipts (both currently and from the past six years) in case you get audited.
Keep an eye on your credit and credit score
If you have shared credit cards, move towards cancelling those and opening up separate accounts. You should also revoke any secondary card privileges on accounts in your name, too. You might even want to consider changing your credit card number if you’re worried your ex might use your credit.
For any shared credit, work with your ex to have a plan in place to make those payments. If your name is on it you could not only be liable for the payments, but also the damage to your credit rating if it goes to collections.
Build new credit
On the other hand, some people leave relationships with little or no credit history at all. If your spouse was the breadwinner, you might not have had much credit in your name to begin with. Start as soon as you can to build your credit rating up, even if that means getting a credit card with a small limit. Just make sure you use it and pay it off in full every month to avoid interest or debt.
Make a new budget
Now that you’ve found yourself newly single, you’ll probably need to reevaluate your budget. Add in all the new or different expenses and income that have incurred. The most common things here are changes to your housing costs, your transportation if you changed vehicles or moved, and any spousal or child support coming in or going out.
If you’ve never made a budget before make sure you include all your income and expenses. Don’t leave anything out or it’s not going to work! If you have children, make realistic budgets for things like kid’s gifts and do not get sucked into “buying their love” and trying to outdo your ex on holidays.
Update your financial goals
Along with your new budget, being single means your financial goals have probably shifted too. You have to plan for a future that doesn’t include your ex, and that alone means things are different. You might not have the same income, but you’re only saving for your own retirement now.
Figure out some of your immediate goals and set some long term plans up so you can get your finances on track. The best way to start is by opening a savings account and setting whatever you can aside for an emergency fund.
Update your insurance policies
Chances are your ex was your benefactor for any life insurance policies you had set up. Now that you’re single, it’s time to update that with a trusted relative or even your children. It’s also a good idea to make sure your ex isn’t included on any other policies, either. Everywhere is different, but if your ex makes a claim in your name or on a joint plan it could affect your insurance rates.
If you had insurance combined with your ex, or through their work, you’ll also need to apply for your own policies. This goes for life, disability, health, or any other benefits you might have shared.
Remove your ex from any shared utility plans
Just like with your insurance, even a shared cell phone plan can get you into trouble. There’s nothing stopping your ex from not paying a shared plan and you’ll be responsible. Even a simple oversight on their part could lead to trouble on your end. Make a list of everything that’s shared and work with your ex to create new accounts.
This is also a good time to make sure none of your ex’s payments are coming out of your account. Double check for things like streaming subscriptions, automatic bill payments, etc.
Ask for help
If you’re breaking up from a serious or long-term relationship, you’ll likely have been living together for some time. When you break up, that also means dividing up all the stuff you bought together. For many people, this is almost like moving out for the first time. Don’t be afraid to ask for help or to put out requests on social media for cheap or free hand me downs. It can save you a lot of money during an already expensive time.
Then, as money permits, you can upgrade those freebies and pass them on to someone else in need.
Try and stay positive
A big life change like becoming newly single is tough on your wallet. It’s quite possible, and probably likely, that you’ll be set back a bit when it comes to your financial goals. That’s OK! The most important thing right now is to get through this and work on getting back on track after you’ve adjusted to your new life. If you follow these money tips for the newly single you’ll at least be on the right path to financial recovery.
Guest Post by: Anne at uniquegifter.com
