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As a Chartered Accountant, writer and business mentor I am all too familiar with the stress clients experience when they lose half their assets in a divorce breakdown. Usually the amount left after heavy legal fees is not enough to buy a new house or start a new investment strategy. But you owe it to yourself and your new family to be positive and start again to create wealth.
The best way to get even is to thrive and prosper. Show your ex what they have missed. Be positive and know in your heart that whatever you have lost, you can regain. Use the power of time to heal all wounds (financial and emotional).
I see it as a two tiered approach:
1. Firstly get back your mojo. Austin Powers travelled back in time to find his. Think about what you did well and then repeat it. Take time off if necessary to get your head into a positive frame of mind.
2. Take stock of how much you have. Be realistic on valuations and what things are really worth.
3. Now make some plans on what you want to achieve.
Now that you are in the right frame of mind the next phase is to be proactive. You have taken a hit. Don’t be despondent. Put your heart and soul into wealth creation. Look forward not back. My tips on this are simple and work no matter how much your start with:
- Don’t be caught with bad debt. By bad debt I mean debt for depreciating assets. Pay off all credit cards, all car loans. Do it fast. Don’t borrow more, but instead work harder. Find ways to earn that extra money it takes.
- Put aside at least 10% of your after tax income for wealth creation. To create wealth you need to create a new nest egg.
- Take a hard look at how much you are earning. If realistically it is not enough, then act to improve it. Remember you are only worth what you think you are worth. So improve this by firstly appreciating your own worth and secondly doing more for your employer or your customers so they will appreciate you. In other words improve the exchange (of money and services) rate for the services you provide to receive the income you want or now need.
- When you have created a new nest egg (or capital) start to invest. Whether that be in shares or property, you need to be in the market again to create wealth. It won’t happen while you sit on the sidelines.
- Be tax effective. I mentioned bad debt earlier. Good debt is debt taken to buy appreciating assets. At this point you may need a financial advisor and an accountant to ensure the snowball you are now creating will gather momentum.
The best way to get back at your ex partner is to become successful. Focus your attention on this and not on the negative associated with what is now in the past.
