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November 16, 2008
Cut Expenses to Ease the Transition
The first step in making this transition is to reduce expenses. Hopefully you have created a budget and know where you can make the biggest cuts, but you should start with the non-essential expenses first:
Television and Internet Service. Do you have digital cable or satellite service? You could save hundreds of dollars a year by downgrading your package or eliminating it altogether.
Telephone Service. If you have a land line plus multiple mobile phones, you should look at reducing the number of phones you have or consolidating all of your phones into one plan.
Dining and Entertainment. If you have a habit of going to the movies or out to eat frequently, this can be a significant money saver. Keep dining out to a minimum and look for low-cost activities for your family.
Automotive Expenses. When both members in the relationship work, it is almost necessary to have two vehicles unless you live in a metropolitan area with extensive mass-transit. With one less person commuting to work it could be possible to eliminate a vehicle altogether or at the very least trade in a newer vehicle with monthly payments and high insurance costs with a cheap used car.
Mortgage or Rent. As a last resort, after cutting as many expenses as you can, it may be time to consider refinancing your mortgage or finding a place to live with lower rent.
By: Jeremy Vohwinkle
Posted by Judith Gerhart on November 16, 2008 | Permalink | Post a comment
Topics: Finance |
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Dr. Judith Gerhart, CFP
Certified Divorce Financial Analyst 
