Divorce proceedings are over, and you’re officially single again. It’s time to look closely at your financial planning and see what you can do to stretch your budget.
The transition from a dual-income household to a single-income household can be challenging. Often, there are added expenses to factor in, such as child support or alimony. It's not unusual to find yourself facing a budget that no longer seems sufficient, leaving you with the crucial task of figuring out how to make ends meet.
Given this, it becomes clear why we need to have an open conversation about money management after divorce. Despite the difficulties, it's essential to remember that it is entirely possible to regain control over your finances.
Money-saving ideas for after divorce
Consolidate card debt on a lower-interest credit card
Post-divorce, your income may have significantly reduced, and managing multiple credit card payments can be overwhelming. When you consolidate your card debt onto a lower-interest credit card, it simplifies the payment process, as you only have to worry about one payment. Plus, the lower interest rate means you'll pay less over time, freeing up funds for other needs.
Check (and cut) some monthly subscriptions
After a divorce, your lifestyle changes, and so do your needs. You might find that some of the monthly subscriptions you were using previously are now unnecessary. By cutting back on these, you eliminate silent money drains that can add up significantly over time. This will help you save more and adjust to your new financial situation.
Sell unwanted items
Over the course of a marriage, couples accumulate a lot of items. Post-divorce, you may find yourself with items that you no longer need or want. Selling these not only helps declutter your space, but it also provides an additional source of income. It's like turning your trash into someone else's treasure while padding your wallet.
If you’re looking to sell valuable items such as jewelry, we suggest giving Worthy a look.
Eat more leftovers
Your grocery bill is one of those monthly expenses that you can control by the choices you make while shopping and eating. When adjusting to living alone, it's easy to fall into the habit of eating out or ordering takeout. But this can quickly eat into your budget.
Cooking meals at home and saving leftovers for later is not only healthier, but it’s also cost-effective. You can make large batches of affordable meals and freeze them, providing you with ready meals for days.
Buy like a single person
Before, you may have been buying in bulk or for a family. Now, as a single person, your needs have changed. By purchasing only what you need, you avoid wasting money on unnecessary items. This is especially true for perishable goods like groceries, where buying in bulk can lead to waste.
Cut back on electricity
Utilities can consume a significant portion of your monthly budget. By making small changes like unplugging unused items, turning down the thermostat, and adjusting your water heater, you can reduce your electricity bill. This can help you save money, and it also contributes to a more sustainable lifestyle.
Small changes can lead to big savings. With a clear plan and mindful spending, you'll be able to regain control over your finances and expenditures and start your new chapter on solid ground.
Track your spending habits
After a divorce, it's crucial to have a clear understanding of your financial situation. Tracking your spending helps you find areas where you spend excessively and, thus, where you could cut back. This empowers you to take control of your money and make informed decisions, which is especially important when you're adjusting to a single income.
Saving money is one of our founding principles. We understand that every dollar counts, especially during this transitional period. That's why we offer flat-rate plans to help you through the divorce process and a menu of services from which you can pick and choose. This allows you to only pay for the services you need, helping you manage your expenses effectively.
Among our services, we also offer financial professional help through a Certified Divorce Financial Analyst (CDFA). Our CDFAs specialize in divorce finance and can provide you with valuable insights and strategies to secure your financial future post-divorce.