5 reasons why every divorced woman should factor fun into their monthly budgeting

If you’re a recently divorced woman, you might be adjusting to a new financial reality. As such, you may feel cautious about spending money.

While careful budgeting is crucial for ensuring you can cover essential living costs and cope with emergencies, it’s also important to allow yourself some fun money. Here are five reasons why.

1. You’re more likely to stick to your budget

Having something enjoyable to look forward to, whether it’s a weekend away or a meal out with friends, is a great way to motivate yourself to stick to the more disciplined aspects of your budget.

This could ensure you stay on top of everyday costs and help you achieve your long-term goals, such as building a healthy retirement fund or saving for your child’s education.

If you set yourself a budget that’s too strict, you’re likely to get frustrated and give up on it. Allowing a degree of flexibility is a more realistic and sustainable approach.

2. It reduces the risk of overspending

Having a designated “fun fund” encourages intentional spending. You’ll need to think carefully about which activities bring you the most joy and prioritise those, rather than spending on impulse.

Budgeting in this way allows you to enjoy your wealth while also having a clear understanding of your spending limits.

In contrast, if you leave no room for fun, you may feel deprived and be tempted to splurge when you’re feeling bored or low. This unplanned spending is more likely to lead to excessive, “blow the budget” behaviour, which could jeopardise your short- and long-term wellbeing.

3. Your mental health will benefit

A life filled solely with working and paying essential bills is unlikely to be truly fulfilling.

We all need to find time and money for the things we love, especially after going through a challenging life experience such as divorce.

Budgeting a set amount each month for these activities allows guilt-free spending and removes the stress that may otherwise be associated with buying non-essentials, such as meals out with friends. Moreover, doing things that make you happy is a great way to boost your mental health.

4. It promotes a positive money mindset

Following your divorce, your income and financial responsibilities might look very different from when you were married. Perhaps your childcare costs have increased, or you’ve moved from a dual-income household to a single-income one?

Indeed, research by Legal & General (2 April 2025) has found that women see their household income cut in half in the year after a divorce.

When faced with such financial challenges, it’s easy to see money as just a means to pay the bills. However, when your budget allows for fun times, such as hobbies and holidays, you might start to see money as a tool for building a healthy, happy life – rather than a source of stress.

Shifting to a more positive money mindset also encourages confidence and control, which are often diminished by major events such as divorce.

5. You can probably afford some flexibility

With careful planning, there’s a good chance you have room in your budget for fun.

Giving yourself some flexibility doesn’t mean throwing caution to the wind and abandoning your savings and investments.

You just need to crunch the numbers, understand your financial situation, and set realistic boundaries.

Budgeting methods such as the 50/30/20 rule may help. This approach involves allocating 50% of your net income to “needs”, 30% to “wants” and 20% to savings and investments. It’s a simple way to ensure that you cover the essentials and allow for fun.

However, while such strategies may provide a useful jumping-off point, it’s important to consult a financial planner who can offer advice that’s tailored to your specific needs and goals.

I can help you understand your new financial situation and create a realistic yet flexible budget

I specialise in supporting women before, during and after divorce. If you’re uncertain about your new financial situation following a separation, I can give you a clear overview of where you stand.

By reviewing your income and expenses, listening to your goals, and understanding what fun means to you, I can help you create a realistic budget that puts you in control and allows you to enjoy life.

Get in touch

If you’d like an objective review of your post-divorce finances and help creating a realistic yet flexible budget, I’d love to hear from you.

To find out more, please get in touch by email at lottie@truefinancialdesign.co.uk or call 03300 889138.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. 

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Approved by 2plan wealth management 21/11/25