COLLEGELIFESTYLE & TRAVEL

Financial Reset: Strategies for Rediscovering Financial Independence

Navigating a breakup or even changing roommate situations isn't just emotionally taxing — it can also bring financial challenges. This transition period offers a crucial opportunity for you to reevaluate and reinforce your financial independence — a key step in personal growth.

Financial Assessment Post Breakup

Begin with a thorough assessment of your finances. If you have joint accounts or shared financial responsibilities, decide how to fairly separate these. This might involve getting new accounts, figuring out a leasing situation, or deciding how to distribute furniture. One of the first things that should be done between those involved after working through any emotional factors is to list out all shared financial assets and obligations, then discuss how to amicably divide them. That conversation might be taxing, but doing so can relieve any possible stress that might occur in the future.

Developing a Personal Financial Plan

Revising your budget is critical. Reflect on your expenses, income, and financial goals. According to ThinkImpact, the annual estimated cost of living for students — including food, housing, clothing, utilities, and more — is around $14,435. Identify areas of opportunity and spending leaks to make behavioral and financial adjustments. A great place to start is to create a new budget that caters to your current solo financial status using digital budgeting tools or campus financial advising services.

Building Financial Resilience

Establishing an emergency fund and setting new savings targets are essential. Aim to save enough money to cover three to six months’ worth of expenses in case of a sudden change in income. Another way to build your financial resilience is by enhancing your financial literacy through workshops or online resources to help you make better-informed decisions during your independence. Start small with your savings — even if it's just $100 — to cover any unexpected expenses such as parking tickets or outings, and gradually increase your contributions as you stabilize financially.

A breakup or sudden life change that leaves you independent from others can be a catalyst for financial empowerment. By reassessing and adjusting your financial strategy, you build not just individuality that might have been lost during your relationship but also flexibility for your future. Remember, this journey, while challenging, is a significant step toward long-term security and personal liberation.

Sources:

https://www.thinkimpact.com/average-college-student-spending/

https://www.bankrate.com/banking/savings/how-much-in-your-emergency-fund/