At some point in everyone’s life, there are hard times. Whether it’s the death of a loved one, losing your job, or even getting a divorce. I’ve worked with many people going through divorces and one of the most common problems is that they simply don’t know where to start financially. For years they’ve had this other person to collaborate and share finances with. And now, all of a sudden, it’s all on them to do it solo.
So, it can be overwhelming to have to plan your finances and figure out how you’re going to afford everything on your own. Especially on top of everything else you have to deal with.
When I think of all the people I’ve worked with in this particular situation, one person really comes to mind, and that’s Mark.
Mark came home on a normal day to find out that his wife of 14 years was leaving him. Of course saying that it came as a shock is an insane understatement. They had not only been together for 14 years, but they had two children together. Now, they were going their separate ways.
He knew he needed to move and be able to manage his bills. He wasn’t necessarily worried about being able to pull it off, he just didn’t know where to start from a financial standpoint.
His wife was going to be staying in their current home and knew that she would be able to take over the mortgage on her own. So, she came to me to see what she would qualify for so she could also figure out what she would be paying Mark as part of their separation. And, as I’m sure you can guess at this point, this is how I met Mark.
He was told that he would be getting $200,000, which he thought would be enough to start over and buy another home in their neighbourhood. But, he still didn’t know what kind of mortgage ge would be able to afford since he would be adding child support payments to the mix.
We decided that completing a cash flow plan would be the best way to go for him. And, the plan that we created for Mark had him paying off some of his debts, setting up an emergency fund, and had him pre-qualifying for a mortgage.
Now, this is where it gets really exciting…
Just two-months after setting him up with his brand new cash flow plan, he happily moved into a new home just down the street from his kids. He had an effective method of operation to handle his new shelter costs and child support payments. He had three months of his net income set aside in an emergency fund. He knew exactly what his spending should look like for the amount he was earning. And finally, he had a plan that had him admitting that he had never been so confident about his finances before.
The bottom line is that money and finances are a very real stressor for people. And, with Mark, we were able to create a personalized cash flow plan that not only decreased that stress, but created confidence. Could you just imagine not worrying about paying your next bill or dealing with an unexpected expense? How much more joy would you experience is those stressors weren’t there?
Cash flow planning isn’t a budget. Budgets are restrictive! Cash flow planning is a way for you to achieve your goals and make the most out of the money you have today. Who doesn’t want to be able to do more and achieve more!?