7 Financial Habits To Adopt After Big Life Changes To Re-Build Your Wealth

Lauren Smith |

Big life transitions, like widowhood or divorce, can feel overwhelming, but they also present an opportunity to reset and regain control of your financial future. As a financial advisor and CERTIFIED FINANCIAL PLANNER™ professional, I’ve seen firsthand how empowering it can be to adopt a few key financial habits that put you on the path to financial confidence. These habits, when practiced consistently, can make a significant difference in building the wealth and security you deserve.

Here are 7 financial habits to adopt after big life changes to take charge of your financial life and set yourself up for long-term success:

1. Create or Reassess Your Budget

  • Why It Matters: A budget isn’t about restricting yourself; it’s about empowering yourself. Knowing exactly where your money is going gives you the ability to make every dollar work toward your goals.
  • Action Step: Spend 30 minutes reviewing your current expenses and categorize them. Identify areas where you can reduce spending and redirect that money into savings or investments. This small step can make a big impact over time.

2. Pay Yourself First

  • Why It Matters: Prioritizing your financial future is crucial, especially now that you may be the sole decision-maker. Putting your own financial well-being first will ensure that you have the resources to build wealth and live comfortably.
  • Action Step: Set up automatic contributions to your retirement accounts, whether it’s a 401(k), IRA, or Roth IRA. Also, establish a high-yield savings account for short-term goals. Treating these contributions as non-negotiable payments to yourself ensures they happen regularly.

3. Review Beneficiary Designations and Estate Plans

  • Why It Matters: Divorce or widowhood can leave outdated names on your accounts, creating potential legal complications down the road. Taking the time to update your beneficiary designations ensures your assets are going where you intend.
  • Action Step: Go through all your accounts—retirement, life insurance, investment accounts—and update your beneficiaries. It's also a good idea to consult with an estate planning attorney to review and possibly revise your will or trust to reflect your current situation.

4. Invest in Education About Investing

  • Why It Matters: Understanding the basics of investing can empower you to grow your wealth over time and feel more confident in your financial decisions. The more you know, the better equipped you’ll be to navigate the financial world.
  • Action Step: Dedicate one hour a week to learning about investing. You could read books, listen to podcasts, or watch videos that explain the basics of stocks, bonds, and diversification. The knowledge you gain will help you make more informed choices with your money.

5. Build an Emergency Fund (or Replenish It)

  • Why It Matters: Life is full of unexpected challenges, and having a solid emergency fund is key to avoiding financial stress during tough times. An emergency fund acts as a safety net, giving you peace of mind when things don’t go as planned.
  • Action Step: Open a dedicated emergency fund account and set up a monthly automatic deposit, even if it’s just $100. Aim to save 3–6 months’ worth of living expenses. If you already have one, review it to ensure it’s adequately funded.

6. Leverage Tax-Advantaged Accounts

  • Why It Matters: Maximizing the use of retirement and health savings accounts allows you to grow your wealth faster by reducing your tax burden. Taking full advantage of these accounts helps you build long-term wealth while saving money on taxes.
  • Action Step: Increase your contributions to your 401(k), IRA, or Health Savings Account (HSA) to align with the contribution limits for 2025. If you’re over 50, take advantage of catch-up contributions to further accelerate your savings.

7. Build a Trusted Financial Team

  • Why It Matters: You don’t have to navigate your finances alone. Having a trusted team of experts on your side can provide invaluable guidance, reduce stress, and help you make informed decisions as you work toward your goals.
  • Action Step: Work with a financial advisor, CPA, and estate attorney to create a comprehensive plan that takes into account your unique situation. This team will ensure your plan is optimized for tax efficiency, growth, and protection, so you can confidently move forward.

Any time you are offered a fresh start – such as after a big life transition or even at the beginning of a new year – you have a chance to embrace new financial habits that will help you build your wealth and help ensure your long-term independence. My advice is to start small, but stay consistent, and you’ll see real progress over time. Remember, you deserve to feel confident in your financial stability, and the steps you take today will shape the future you desire.

If you're ready to take the next step in building the wealth you deserve, let’s connect. As a financial advisor, I focus on helping women navigate life transitions and create a clear path toward financial independence. Let’s work together to create the financial future you’ve always wanted.

 

Please Note: This information was provided in part by ChatGPT. This information, developed by an independent third party, has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. This information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to herein. Investments mentioned may not be suitable for all investors. The material is general in nature. Past performance may not be indicative of future results. Raymond James does not provide advice on tax, legal or mortgage issues. These matters should be discussed with the appropriate professional. Any opinions are those of Lauren Smith and not necessarily those of Raymond James.