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Divorce is difficult for many different reasons. One major aspect to take into consideration is finance.
Even before discussing the splitting of assets and joint accounts, you may struggle to transition from a two-income household to a one-income household.
As such, many divorcees make moves to save money as soon as possible. This may mean downsizing and even selling some possessions.
Here are some tips for saving money after a divorce.
Rent a Smaller Place
You may not want to live in a smaller place, and if you have children it may not be totally practical. But downsizing can save you a lot of money.
It is something that affects your quality of life. However, the impact is often not as bad as people expect and many people actually enjoy living in a smaller place.
It is also worthwhile to rent rather than buy a place. When you rent, it is easy to get an affordable renters insurance policy rather than expensive homeowners insurance.
You don’t have to put down a hefty down payment either, which is a huge financial relief.
Open a Savings Account
If you had joint savings account with your spouse, now is the time to open one of your own. Not only is your joint savings account going to be dissolved, but you’re also going to have a harder time-saving. The expenses you shared with your spouse are now yours alone.
You’re going to have less money left over in your budget at the end of each month.
By opening a savings account as soon as possible, you give yourself more time to rebuild your savings.
Hopefully, you have funds left from your joint savings account, to which you can add whatever is available in your budget once you’ve covered expenses.
Households tend to waste an enormous amount of food every month. This happens because it is difficult to assess exactly how much you need to buy when you go grocery shopping.
People also often opt for takeout instead of cooking, leading to the best intentions going to waste.
If you are going to be cooking for one, it can be particularly difficult to eliminate waste. However, by meal planning, you can come as close as possible.
Meal planning requires dedication. At the beginning of each week, you need to decide on your meals and stick to the plan. However, once you have a plan, cooking is less stressful.
You don’t have to think about what you are going to make. Instead, you can just prepare and cook your food.
It is also worthwhile only buying perishables for each meal. Instead of getting groceries that will sit and go off in the fridge, you can benefit from buying less and shopping more often.
This tip will definitely help you save money after a divorce
Consider Selling Old Possessions
Selling old possessions is never easy. You have sentimental value attached to them. They may remind you of a very happy part of your life.
Of course, they may also remind you of the bad times. Either way, if you are no longer using them, they could be worth something.
As they say, one person’s junk is another person’s treasure. This is particularly true when it comes to decor. Just because something is old or kitsch does not mean it won’t look great on the right person’s shelf.
Many high-earning people buy a lot of their decor at markets or yard sales for this reason.
This is not an encouragement to sell off some of your spouse’s treasured possessions. While that may be satisfying at the moment, it will only lead to regrets.
Nonetheless, if you have no reason to keep something and your spouse is not trying to claim it, you may as well cash in.
Divorce can be a very jarring process in financial terms. Aiming to save money after a divorce is crucial, but it can be hard to find ways to cut back.
Use the above tips to start your own savings account after divorce.