23 Practical Ways to Save Money after Divorce

By Tracy Achen 

If you're recently divorced (or currently going through a divorce), you may feel financially overwhelmed by legal fees, childcare expenses, and having to pay all the bills solely by yourself. Unfortunately, divorce has a way of wrecking your finances, leaving you feeling like there is no way you can make ends meet.

While there is no magic wand to make your financial trouble disappear, there are practical ways to save money that can help you stay within your budget and lower some of the frustration in your life.

To help you get started, here are the 5 main money moves to make after divorce to get your finances back on track: 

1. Create Your Post-Divorce Budget 
2. Reduce Recurring Bills 
3. Save on Groceries and Meals 
4. Save Money on Common Expenses 
5. Build an Emergency Fund 

Create Your Post-Divorce Budget

Your budget should change as your life changes. Before you make any financial moves, it helps to take a realistic look at your current situation.

First, list your income. You want to list all the money coming in, including your paycheck, child support, alimony payments, income assistance, etc. Be sure that the amount you list for your paycheck is what you bring in after taxes and deductions. If your income varies, use the lowest amount from the last three months.

If there simply isn’t enough money for your essential expenses, you might consider temporarily reducing your retirement contributions for a short time to bring in a little more on your paycheck. It's important to remember this should only be a temporary reduction to help you get over the hump.

Next, track your spending. You need to figure out how much you are actually spending each month. Go through your bank and credit card statements for at least three months to get a feel for where your money is going. If you take the total of all your expenses and divide by three, you'll end up with a monthly average. Listing all your expenses can help you see how much money you’re spending on essentials, as well as areas where you can cut back and save money. 

Then, create a budget. This is where you compare how much money you have coming in versus how much is getting spent. To help you get everything down on paper, you can use this printable budget worksheet.

It can be really discouraging to see everything in black and white, but this is how you get a realistic view of your situation so you can move forward. You can get started by reviewing your recurring bills to see if there is any way to spend less money on these monthly expenses.

Reduce Recurring Bills

Recurring bills are those expenses that occur on a regular basis, such as housing, utilities, insurance premiums, etc. Below are some practical ways to lower some of these recurring expenses.

1. Reduce Housing Costs

Refinancing your mortgage could result in substantial monthly savings. But, you should only refinance if you plan on staying in your home for at least 2 years. This is because it will take that long to recoup the closing costs.

If you’re renting, consider moving into a cheaper house or apartment. Just make sure that you can get out of your lease and won't be responsible for the remaining rent. You might also consider getting a room-mate to help split the cost of your mortgage or rent.

2. Even Out Your Utility Bills

High heating bills in the winter and cooling bills in the summer can wreak your budget. But there is a way to even out your utility bills so they are more manageable every month. Ask your utility company to put you on a monthly average billing plan. This way you can avoid the huge bills that occur due to seasonal fluctuations.

Another way to reduce your utility bills is to lower your thermostat in the winter and raise it in the summer. Also, turn off lights when you leave a room, unplug appliances and devices you're not using, wash clothes in cold water, and only run the dishwasher when it's full. 

3. Reduce Subscriptions and Memberships

Pay attention to subscriptions and memberships. If you don’t remember all the services you’re subscribed to, review your checking account and credit card statements for recurring charges.

Things to re-evaluate include gym memberships, as well as newspaper and magazine subscriptions. If you love to read, check your local library for your favorite magazines and newspapers. Also look for recurring charges for online apps or software you rarely use. Cancel anything you no longer use.

4. Revaluate Your Entertainment Options

Let's face it, most of us don't take advantage of all the available channels we already have. If you’re paying for both streaming services and cable (or satellite TV), eliminate one. If you’re hooked on the network stations (NBC, CBS, ABC), you can get an antenna and ditch the cable altogether.

If you have more than one streaming service, keep the one that fits the majority of your needs and cancel the rest. If you are an Amazon Prime member, you can access Amazon prime Video which has an abundance of movies and TV shows. 

5. Re-examine Your Phone Plan

Check out what other cell companies offer and see if your provider will match it. You may be able to drastically cut your cell phone bill in the process. Most of the major carriers also offer a $10/month discount if you set up auto pay. Before switching, just make sure the new carrier has good coverage in your area.

Another option for reducing your cell phone bill is to consider a pre-paid plan. Just shop around and make sure it fits your needs.

6. Review Your Insurance Policies

Don’t hesitate to shop around and compare quotes on your home, health, and auto policies. Just be sure to match coverage details when comparing rates. You can compare rates at insurance comparison websites which match you to companies with the best premiums based on your insurance needs. Reputable comparison sites include: 

• policygenius.com 
• insurify.com 
• compare.com 
• surance.com 
• insurance.com  
• insurancequotes.com 

You can also lower your monthly premium by raising the deductible. According to an InsuranceQuotes.com study (1), raising the deductible from $500 to $1,000 can save consumers 9% on their automobile insurance premiums. If you decide to raise your deductible, just make sure that you have money saved back to cover the deductible. You can set up a regular savings account to cover deductibles for your home and automobile coverage. And a health care savings account is a good way to make sure excess medical expenses get paid.

7. Reduce Your Credit Card Debt

It's so easy to use your card to pay for purchases and just as easy to loose track of how much you've spent. So, the first way to reduce your credit card debt is to use cash instead of your credit card for everyday expenses. You'll be a lot more mindful of your purchases when you're spending actual cash out of your wallet. If you don't have the self-control to not use your credit card, leave it in a safe place at home so you won't be tempted.

Once you're not adding to your credit card debt, work on paying the balance off. If you're only making the minimum payment each month, the majority of your payment goes towards interest. To make headway on your debt, you need to pay more than the minimum. To help you get started, here are some different ways to pay down your credit card debt. This takes time, but is one of the most efficient ways to save money in the long run.

You can also save money by getting a lower interest rate on your credit cards. If you have a good payment history, you can call the card issuer to negotiate a better interest rate. You may be pleasantly surprised if they lower your rate. And if they don't, you can always consider transferring your balance to a credit card with a lower interest rate.

Ways to Save Money on Groceries and Meals

The cost of groceries and meals makes up a large part of most people's budgets. So it makes sense to look for ways to reduce what you spend on food.

8. Plan Meals

Plan your meals in advance and write out your shopping list to avoid impulse buys when you go to the grocery store. See what you already have in your pantry first and build your meals around those items. When writing out your shopping list, consider using generic and store brands. They are often just as good as the name brands and typically cost 25-30% less while offering similar quality.

9. Use Coupons and Shop Grocery Store Sales

It pays to comparison shop between stores and review the sales ads every week. You can save a lot of money on your monthly grocery bill if you stock up on non-perishable foods when they go on sale and use coupons (especially on the sale items).

If you get your local paper, you can clip coupons out of the Sunday circular. Another idea is to visit coupons.com which offers printable manufacturer coupons. And many national grocery chains and other retailers offer apps where you can clip coupons directly to your account.

Matching the sale items with your coupons can save you up to $1200 a year. Here are some practical tips for how to maximize your grocery budget with coupons.

10. Skip the Soda and Drink Water Instead

Just ditching the soda can save you a lot of money. For example, consider that at 12-pack of soda can cost over $8.00 if you buy it every week. By skipping the soda, you can save $416 a year. It’s important that you don’t just replace the soda with bottled water (which is also expensive).

Most city tap water is just as safe as bottled water. If you don't like the taste of your tap water, consider getting a water filtration pitcher. Then just use a refillable water bottle for when you're working out or leave the house. And if you eat out at a restaurant, consider ordering water instead of a pricey soda.

11. Cook Your Meals Instead of Eating Out

The average household spends $3945 annually on food eaten away from home (2). By cooking your own meals instead of eating out, you can save over $328 a month. Not only will you be saving money, the food you eat will probably be healthier for you.

In addition to cooking your own meals, you should avoid carry-out and meal delivery as much as possible to save even more money.

Saving Money on Common Expenses

Once you complete your budget, you may be shocked at just how much you're spending on everyday expenses. Here are some tips to help reduce that amount. 

12. Reduce Transportation Costs

Sharing the ride to work with one other person can cut your transportation costs immensely (especially with today's high gas prices). Carpooling is also a good idea if your children participate in the same sports or after-school activities as their friends. Just make sure to take turns chauffeuring the kids so it's fair to everyone.

You can also save gas by combining errands to one day so you're not making multiple trips during the week. And it's a good idea is to check your tire pressure, because under-inflated tires can reduce your fuel efficiency.

If it's practical for your area, you can also consider taking public transportation, walking, or riding a bike to work instead of having to pay for gas and parking. 

13. Clean Your Own House

If you're paying someone else $100 twice a month to clean your house, you can save $2600 a year doing it yourself. Just develop a weekly routine for your various cleaning tasks so you get everything done. You might even consider getting your kids involved so they learn a valuable life skill. 

14. Break Your Daily Coffee Shop Habit

Skip the coffee shop on your way to work and brew your own coffee at home. Doing so can save you hundreds per year. For example, if you're spending $2.95 on your daily coffee, you can save over $760 a year by bringing your own home-brewed coffee to work. 

15. Brown-Bag It

It's so easy to go to a restaurant or grab something at the drive-through during your lunch break. But taking your lunch to work just twice a week instead of eating out can save you at least $1000 a year. Once you get in the routine, it doesn't take very long to pack up leftovers or make a sandwich before you turn in for the night. Not only will you be saving money, you'll have more time to enjoy your lunch break.

16. Re-Examine Your Beauty Routine

Salons are expensive, so it makes sense to learn how to do your own manicure and color your hair yourself. You can also research less-expensive alternatives to your skin-care and beauty products to save even more money.

17. Reconsider Clothes Shopping Options

The cost of clothing can strain any budget, especially if you have kids who are growing like weeds. Shopping for clearances items when stores begin to put out next seasons clothes can save 30-75% on you family clothing budget. You can also shop in thrift and consignment stores for gently-used clothing. If you’re willing to take the time to look, you can score name brand clothing for next to nothing.

18. Time Purchases Around Sale Periods 

Shopping for sales items is a great way to save money. For example, if you shop for sheets and linens during the white sales (usually starting in early in the year), you can save up to 40% off regular prices.

19. Reduce Bank Fees

It makes sense to compare account fees between banks. If you don't have to pay a monthly fee, you can save at least $72 a year. Plus, be sure to only use ATM's in your bank's network to avoid extra charges. And make sure you have enough money in your account before making a purchase so you can avoid over-draft fees. 

20. Cut Your Gift Giving Budget 

Make your own gifts instead of buying something from the store. Homemade gifts often mean more to recipients because of the thought that goes into them. Here are some affordable gift ideas to help you get started.

Build an Emergency Fund 

As you’re rebuilding your life after divorce, make it a priority to have an emergency fund in a dedicated savings account. Only use this money for true emergencies and always make a plan to rebuild your emergency fund when you use it.

A lot of financial experts advise having enough saved back to cover 3-6 months of living expenses. That can seem out of reach for most people, so focus on saving up at least one month of living expenses first. If that's still doesn't seem possible, consider saving up $500. The main thing is to get your fund started.

21. Automate Your Savings

You can automatically have a set amount transferred to your savings account when your paycheck is deposited. This removes the temptation to spend the extra cash. Even if you are only able to save $25 a paycheck, you’ll save $650 a year if you're paid every other week.

22. Build Your Savings by Selling Unwanted Items 

Turn clutter into extra cash. Purge and sell all your clothing items and jewelry you’ll never wear again. If you have furniture or appliances you’re not using, consider getting rid of it.

You can have a yard sale or use online sites to sell your items. For example, you can sell jewelry on Worthy, clothes on Poshmark, books on Amazon, household stuff on Facebook Marketplace, and just about anything on eBay. Stash this money in your savings account to continue building your emergency fund. 

23. Take Advantage of Unexpected Money 

Deposit any extra money you weren’t anticipating into your savings account. This could include things like bonuses or refunds. If you weren’t expecting it, you won’t miss it. You can also save your spare change to deposit in your emergency account. It's amazing how much it can amount to in a year's time. 

Final Thoughts