Discussions around money are often very emotional and difficult. It is important that you have all the facts and are comfortable with your family situation. Follow these simple steps and you'll be on your way to feeling like you’re able to make educated decisions that are right for your family.
1. Work out your income
How much money do you currently earn from your main job? Are there any other sources of income e.g. from investments?
2. Analyse your bank statements
In order to get a realistic view of your spending habits go through your last 3 months bank statements and work out where you spend your money. Divide the total expenditure by 3 to get your average monthly spend.
3. Regular Bills
Put together a list of all your regular bills. It may be useful to divide them into categories such as:
- Housing: rent, mortgage, council rates, body corporate
- Utilities: power, phone, gas, water, mobile
- Groceries
- Vehicles: repayments, registration, drivers license, maintenance, petrol, parking, tolls, car wash, taxis
- Insurance: house, contents, health, vehicle, superannuation, life
- Education: School fees, extra curricular costs, extra tuition, child care, course materials, school uniforms
- Regular payments: subscriptions, personal loans, store cards, credit cards
- Donations: charity, church
- Entertainment: movies, eating out, DVD's, music, alcohol, cigarettes, newspapers, magazines, books, toys, hobbies
- Personal & Health items: pharmacy, cosmetics, hair care, health, clothing, footwear
4. Add it up
As scary as it all seems you now need to ask yourself the hard questions. Do you make enough to cover your outgoings? How much is required to break even?
If you're the primary caregiver, how much will you need in child support? If you're the person who will be paying child support, can you afford to pay this amount? Do you need to get a 2nd job or a higher paying job? If not working, do you need to get a job?
If required, where can you cuts costs?
It is often upsetting seeing in black and white the reality of living apart. However, if you know where you stand at least then you can deal with the situation and move forward - unfortunately ignoring it will not make it go away!
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