Smart Money Moves for Single Moms: How I Tripled My Income After Divorce

Let’s get real: divorce isn’t just a blow to the ego—it’s a wrecking ball that obliterates your budget.

Back in February 2018, my ex walked out. I was on mat leave, trying to adjust to life with an infant and a three-year-old, and trying to find a new job. The company I worked for made some cutbacks. Despite all the praise about how great I was and all the wonderful work I did over my five-year run, I, along with many others, received a 60-day layoff notice.

Instead of basking in the birth of my newborn son, I was in my own personal hell. My household income nosedived by 100%.

I managed to land at a great company in May. Even with a slight pay increase, I still missed my ex's $60,000 income that helped to make ends meet.

Then the pandemic hit in 2019. Groceries? Skyrocketed. Utilities? Doubled. Gas? Through the roof. All of those necessities cost an extra $500 I didn't have. My job, bless their hearts, tried to keep me sane by covering the cost of a nanny so I could work while my two kids were home. The catch? That act of kindness slapped me with a $4,000 tax bill that put another drain on my paycheck every two weeks. And since we’re on the topic of surprises, HR announced a change to their benefits package: a $3,000 hike in the annual medical plan was coming in the new year.

Translation? A total loss of $67,500 between reduced income and increased expenses. That’s the kind of math that keeps you awake at night.

Honestly, I had a couple of meltdowns over my dwindling finances and the terrifying prospect of how it might affect my kids' future. I was gripped with the fear of living on instant ramen noodles, huddled around space heaters under bargain-bin blankets, trying to stretch every last dollar.

It was time to regroup. Like every single mom, adjusting to life after divorce, I had to ask myself big questions. What kind of life do I want to provide for myself and my kids? What can I do about it? The next morning, I pulled myself together and started mapping out a plan. Here are five practical ways to rebuild your financial foundation—no fluff, just what works. These are the answers I came up with when I asked myself those big questions, and they made all the difference.

1. Cut Back on Unnecessary Spending

Cue the eye roll. I get it; you don’t want to hear about skipping lattes or coupon clipping. With all the stress you’re shouldering, you deserve some pleasure in life. But hear me out. When your budget is bleeding, every dollar matters.

Get your calculator out. How many trips do you make to Starbucks or Dunkin' Donuts a week? How much does each order cost per week or month?

Now let's take a look at your monthly subscriptions. Write a list of your streaming services, gym memberships, meal kit plans, music apps, and other recurring charges. Do you really need Netflix, Prime, Paramount, Disney+, Hulu, Apple TV+, or HBO Max? How often do you really use them?

Now let's talk about the stockpile of packages from Amazon, Shein, Nordstrom, and other retailers. How often do you hit the buy now button? Do you really need those items? Personally speaking, my budget was the victim of my own impulse shopping to the tune of $400 a month. How did I overcome it? Limit online shopping to one day a week for non-urgent items. By limiting my actual purchases to one day a week, I scrutinize each purchase more carefully and spend less.

Tip: Start with easy wins, like apps that round up your purchases or track subscriptions you forgot existed. Goodbye, random streaming services I’ve never used.

2. Get a Promotion

Let’s talk about climbing the corporate ladder. You're a newly divorced mom, adjusting to life after divorce. At the time, I was paying a mortgage, daycare tuition for an infant and a toddler, and my car was smoking at every stoplight. Yes, my ex was paying about $1300 a month in child support, but it only covered our youngest son's childcare—not the food, clothes, gas, formula, and diapers the kids needed every day. Even though I was bringing home a six-figure salary, I couldn't afford my job anymore. My only choice was to ask for a raise.

You're trying to decide whether to go after a new role at your current company to increase your income. The big question: is it worth the leap? According to a report from Payscale, getting a promotion can boost your salary by 9.3%—but only if you’re willing to negotiate it. For someone earning $75,000, that’s nearly $7,000 extra a year. Not too shabby, right?

Here's the good news. A step up at your current employer means more money without changing companies. Plus, it’s a huge confidence booster. After doing a little math, I called the VP of my company. I figured she’d understand my dilemma as a fellow working mom. It worked—I got a new title and a 6% raise.

My promotion also came with a trade-off: more responsibility, longer hours, and increased stress. But hey, I considered it a victory—especially when I realized my car finally had enough gas money to make it to the mechanic.

Tip: Have a game plan. Track your achievements, build a case, and practice your pitch. If you don’t ask, the answer’s always no.

3. Get a New Job

Sometimes, the best way up is out. The company I was working for was great, but over time, I realized that 6% raise was just enough to take care of my kids' needs but not my own. I was barely treading water, juggling credit card bills that seemed to grow with every grocery run. I needed more—work-life balance, stability, and the chance to breathe a little easier.

One night, after putting the kids to bed, I called a former colleague. We hadn't talked in years, but she still knew me well enough to say, "I think I know the perfect role for you." The next week, I dusted off my resume and prepped like my life depended on it—because it kind of did. Things moved fast. The interview was a blur of tough questions and confident answers, and before I knew it, they made me an offer.

When I saw the number—$50K more than I was currently making with a 20% bonus—I cried. It was the lifeline I needed to replace my ex's income and finally start climbing out of debt. After two years of struggling to make ends meet, this new opportunity meant I could truly afford to build a better future for my kids and me.

For a divorced mom juggling more than ever, consider this: a new job can be more than just a paycheck. Imagine the flexibility of remote work, giving you time to manage life with kids, or the relief of wellness programs that reimburse gym memberships and offer discounted therapy services. Picture annual bonuses and stock options helping you save for your kids' college or finally tackling retirement planning. These benefits aren’t just perks—they’re pathways to a more balanced and secure future.

Tip: Leverage your network. Your contacts have the inside scoop on opportunities, what potential employers are looking for, and how to negotiate the best compensation package.

4. Get a Side Hustle

Who says you can’t have multiple streams of income? Whether it’s freelancing, tutoring, or selling your handcrafted Etsy masterpieces, a side hustle can pad your bank account. In my case, I wrote a book that generates a couple hundred dollars a month.

Beyond the extra income, starting a side business comes with tax benefits. By setting up a small business, you may be able to deduct expenses like home office supplies, internet costs, or even mileage if your side job involves travel. These deductions can lower your taxable income, which might mean a bigger tax refund come April. Just as a reminder, I'm no tax guru. Always consult a tax expert to ensure you’re maximizing your benefits and following the latest tax regulations.

Tip: Consult a tax professional to understand the full scope of deductions available to you as a small business owner. Even small efforts can make a big difference in your tax return.

5. Maximize Benefits for Tax Savings

When it comes to life after divorce, every dollar counts. Don't leave money on the table. Let’s talk about leveraging an HSA or FSA to help stretch your budget and make your money work harder for you.

The three options I use most are 401(k) or IRA contributions to maximize retirement savings, contributing to dependent care accounts to offset childcare costs, and tax-advantaged savings accounts for medical expenses.

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs): Let me share why I personally prefer an HSA over an FSA. With an HSA, the money is yours forever—no "use it or lose it" deadlines. Plus, you have the option to invest any leftover funds, potentially growing your savings while covering eligible medical expenses.

Dependent Care Accounts: You can contribute up to $5,000, the IRS limit, for most households. You can then take that money and use it for qualifying childcare costs, including daycare, babysitters, or summer camps. This has been a lifesaver offsetting the cost of daycare or during summer camp season that easily racks up to thousands of childcare costs each year.

Retirement Savings: As a divorced mom, building your financial security is key—and contributing to a 401(k) or IRA is one of the smartest moves you can make. Not only do these accounts help you save for retirement, but they also reduce your taxable income right now. That means you’re keeping more of your hard-earned money in your pocket instead of handing it over to Uncle Sam.

Tip: Speak with your HR department or a financial advisor to ensure you’re taking full advantage of all available pre-tax benefits.

Final Thoughts

If anyone tells you it’s all downhill after divorce? Smile, sip your budget-friendly coffee, and prove them wrong. You’ve got this.

You can start by cutting back on unnecessary spending. Need to take it up a notch? Pursue a promotion or a new job where you can make the most of the benefits available to you. Whether it’s negotiating a raise, landing a better-paying job, or starting a side hustle, every decision you make moves you closer to stability and independence.

I followed these strategies over and over again. Today, I'm proud to say that in three years, I was able to triple my income.

I wish I could take credit for it all. Sure, I did the hard work, but my mentor encouraged me to believe in the vision I had for this chapter in my life.

Fortunately for me, I had

a mentor who reassured me that everything I wanted was still within reach as a single mom and that life after divorce didn't have to be a life sentence of hardship. It just requires a few strategic money moves to get to your goal.

If you’re ready to take charge of your financial future and would like the guidance of someone who’s been through it, consider applying for mentorship. A mentor can provide the reassurance, strategy, and accountability to help you achieve your goals and thrive after divorce.