Financial wins after a breakup
So you’ve just had a breakup. Have a good cry, drink some wine, watch a sad movie, and then let’s get to work. Because although you might not be doing well emotionally, there is a sliver of silver lining: this could be a great opportunity to improve yourself financially…in 4 easy steps. Change your passwords, focus on your goals, pay down your debt, and get professional, personalized help if needed.
Living with a partner before being legally married is more prevalent in millennials now than ever before. And by prevalent we mean up 50% in the last 10 years. So yeah, people are getting together. But they’re also breaking up after becoming financially entangled. And if that’s you, welcome. We’re here to help. Feel what you need to feel and then pull yourself up by the bootstraps. Let’s get you better today than you were yesterday. At least financially.
Change your passwords
How many people are logged into your streaming services? We’re talking Netflix, Hulu, Disney+, Spotify, HBO, Peacock, the list goes on and on. 44 million US adults are using “borrowed” accounts to access streaming services. Don’t let your ex be one of those. And while you’re at it, change your passwords to any and all bank accounts and credit cards. Under no circumstance should your ex have the ability to dip into your finances, but especially not at a time when things could still be very emotional(ly draining). READ THIS: THE NEW MEANING OF WEALTH
Focus on your financial goals
Look, it happens - opposites attract. Savers partner with Spenders. Spenders partner with Savers. At the end of the day, we all have our fair share of argu-sations (argumentative conversations). One person on Twitter even went so far as to say, “Dating guys in their 20s is an unpaid internship.” To which another responded, “Dating girls in their 20s is an unpaid stress experiment.”Beautiful. Use this opportunity to focus on your own short-, mid-, and long-term goals.
F*ck a budget
You know how we feel about budgeting around here, so we’re not going to suggest updating your budget. But focus on what you want the money you’ve earned to do for you. Is it building up your emergency fund? Beginning to invest or increase the amount you’ve invested so that you can afford a house in 5 years? Save for Invisalign because you lost your retainer and were too scared to tell your parents? The point of saving is to spend. Make clear and concrete goals regarding what you want to spend your money on. And if you need to cover their half of the rent for a couple of months until you can figure out how to break your lease or find a roommate, this is exactly what your emergency fund is for. You’re prepared for something like this.
Pay down your own debt
Debt pay-down strategies are everywhere (here are our favorites), but in order to move toward your financial goals, you have to cut out what’s preventing you from gaining traction in moving forward. Whether it’s credit card debt, student loans, personal loans, or any other debt you’re in, prioritize getting yourself out of the hole (and into another one, amirite?)There are two benefits here:
The odds are good that both partners are coming into a relationship with their own debt. Working together could mean you’re picking up more weight than you’re bringing to the table and helping your partner. Now you get to focus on yours. The lighter weight is easier to carry.
You can use this independent momentum you have to make yourself financially sexy for the next time around. Too soon?
READ THIS: HOW MUCH MONEY SHOULD I HAVE BY 40?
Get professional help if necessary
Therapists aren’t the only helpful professional for you to utilize right now. If you do happen to have shared assets, laws vary by state. It’s important to find out what rights and limitations exist depending on where you live. If you want a handhold while you get your financial sh*t together, we’re here to help. Always.
Stash Wealth provides financial plans designed to assist high earning young professionals build and manage their wealth.
Stash Wealth offers a pragmatic approach to financial planning and wealth management. Whether saving up for Tahiti or a Tesla, we help you achieve your short-term and long-term goals.
Written by Stash Wealth Staff Writer
Stash Wealth Staff Writers are knowledgeable about personal finance topics. Their objective is to unravel the complexities of finance trade jargon, products, and services in order to equip HENRYs with a sound understanding of financial matters.