Are you a single mom trying to get your finances in order for your family? Read on to learn these financial planning strategies for help.
Being a single mom isn’t easy. Without a spouse or partner to back you up, all of the responsibility falls on you.
Between getting the kids to and from school, making sure homework is done, serving as your home’s sole breadwinner, cooking, cleaning, and keeping everyone happy, there’s not much time your day to work on financial planning.
That doesn’t have to be the case, though. There are plenty of financial planning strategies that can put you and your family in a better place financially without much effort at all.
Here are five of the best financial planning strategies for single moms.
1. Regularly Put Money Into Savings
The simple truth is that fewer Americans have the luxury of looking forward to retirement. That doesn’t have to be the case, though.
Starting small can have big ramifications.
Taking even 10 percent of each paycheck and putting it into a savings account can add up quickly.
If you can’t afford 10 percent, even 5 percent will do. As long as you’re saving, you’re proactively taking care of your future self and family.
2. Pay Attention To Your Accounts
The average income for a single mother is estimated at around $37,000 per year. That’s not a lot.
As a result, there’s not a whole lot of extra spending money once bills are paid.
And unfortunately, it’s fairly easy to lose track of money and end up with an overdrawn bank account. Make a habit of checking your bank account at least twice per week, once at the beginning and once at the end.
Doing so will help you adjust your budget as needed.
3. Stay Up To Date On Bills
You know those bills sitting unopened on the counter? Those need to be addressed, ASAP.
It’s okay, finances can be nerve wracking, to put it mildly. But that’s no excuse for ignoring your responsibilities.
Outdated bills can quickly turn into dodging calls from collections and a ruined credit score. With a poor credit score, everything from renting an apartment to buying a car to your kids’ college loans can be negatively affected.
No one likes paying bills. But by staying up to date on your utilities, rent, etc., you’re teaching your kids financial responsibility while staying afloat.
4. Create An Emergency Fund
Traditionally, it’s recommended that families have at least six months’ worth of living expenses saved up in case of an emergency.
As you likely know, that isn’t always possible.
Still, it’s crucial that you set some money aside for emergencies. Kids get injured, cars break down, and the job market is a bit of a mess.
Creating an emergency fund is easily one of the most important financial planning strategies. The sooner you begin, the better.
5. Talk To A Financial Planner
Finally, if you’re unsure about financial literacy, consult a professional.
There are plenty of wonderful professionals and businesses, such as Tommy Mai financial, that can help you set up a budget, balance your account, and plan for the future.
Financial Planning Strategies For Every Income Level
Planning for your future can be stressful and difficult, but as long as you’re planning ahead, you’re ahead of the curve.
For more great tips on how to raise a great family (and save money in the process) be sure to visit the Serendipity Mommy finance archives.