Breakup is an emotionally challenging and costly experience. Not only your psychological state requires your attention but also your wallet starts to scream for additional money. It is really challenging. But you can make it easier and it is not as desperate as it seems right now.
First of all, you need to get rid of all things that belong to both of you. Cancellation and closure of all joint subscriptions and accounts is a must. You need to change all passwords you shared with each other – especially, if your Netflix account was used to watch reality shows by the former boyfriend/girlfriend. Believe me, it is not revenge. It is just a question of money.
Joint bank account has to be closed as well. Right away, not tomorrow and not later. You need to take your money out and close it. Joint credit card requires your name removal. Finances of people behave strangely after a breakup; you do not want to find out it the hard way.
You see, nobody tells you one important thing: you probably have to rebuild your emergency fund. Living together meant sharing all expenses. Now, when you pay for everything alone, finances do not adjust themselves. So, you need to create a plan or budget. There are applications such as YNAB and even notes on your smartphone will work. See your actual monthly expenses being a single person. It might be unpleasant. But it is important to see the truth.
It is time for your spending habits to get weird. Emotional shopping is a real thing. In such mood, you will understand that you ordered three hoodies at night due to some Instagram advertisement. Create a rule for yourself that anything costlier than fifty dollars should be postponed for 48 hours before purchasing. You will be surprised how often you forget about it.
Well, if you were living together, you have to resolve your housing problem. Can you handle this apartment? Do not be delusional – moving to parents’ home or getting a roommate may seem humiliating. However, it is just a temporary solution which will help you to save a few hundred dollars each month. Pride is costly. Math is not.
Grocery shopping will also change. You will start buying products for a single person, therefore, you will have no sense in buying in bulk. It is time to learn how to buy smaller portions. Meal preparation in advance on Sundays (when you can bear it) is also a good idea.
Credit score issues should be taken into consideration. You need to check your credit report on Credit Karma or directly with credit bureaus and ensure that nothing lowers your score because of your ex. It may require disputes but it is essential to do it anyway.
The next unexpected issue that needs to be mentioned is that it is the best time to ask for a raise or start working freelance. Your schedule becomes loose and you have more time. Therefore, you have enough motivation to earn more. It is better than spending all night watching his/her Instagram stories.
If you do not automate your savings already, it is the time to do it. Even twenty-five dollars per week put into high-yield savings account at Ally or Marcus grow quite quickly. Make it an automated and boring process. This is the aim.
Finally, do not lend your ex any money and do not borrow money from him/her. Clean split is worth much more than any amount of money you can lend or borrow. Emotional costs of staying financially linked are not worth it.
It will pass. It is a mess and a costly process. But it is just temporary. Your finances will get healed. You will get healed too. Possibly even at the same time.