White Coat Investor Podcast MtoM #198: Financially Recovering From a Divorce and Finance 101: The Importance of Both Spouses Working Towards Financial Goals Together
Nov 25, 2024
A personal tale unfolds as an anesthesiologist shares his journey of financial recovery post-divorce. He emphasizes the power of perseverance and how he transformed his life from debt to financial success through hard work and side gigs. The discussion shifts to the importance of couples collaborating on financial goals, especially during tough times. Practical strategies are offered for navigating financial challenges after a divorce, highlighting the significance of proactive communication and support between partners.
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Early Marriage, Overspending, And Divorce
- Aru married right out of medical school in 1999 and divorced in 2010, experiencing a severe financial hit.
- He described living beyond means, with mortgage, car loans, credit cards, and negative net worth before the divorce.
High Income Doesn’t Prevent Negative Net Worth
- Even dual-physician households can end up with negative net worth if they spend ahead of future earnings.
- High income does not prevent debt accumulation from mortgages, car loans, and credit cards.
Start With A Brutal Cash-Flow Audit
- After the divorce, Aru immediately audited cash flow and prioritized budgeting to make next month better than the current one.
- He read practical personal finance books and used online resources to become financially literate quickly.
