• Wednesday, February 28, 2024
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BusinessDay

How single mothers can manage their finances

single-mothers

When as a husband or wife taking care of the family and you know you are all alone, the only one who can create a stable financial future for you and your child is you. Remember, a single mother is a woman who is taking care of children (be financially or whatever), but does not have the aid of a husband/father to help them raise or take care of said children. Often times, single mothers have divorced from the father, maybe the father has passed away, or the father has left the mother. You know, that’s a lot of responsibility that is very challenging. You are all alone in charge; no one else decides the best way to neither manage your money nor create a financial plan for you.

With this write-up especially for single mothers, you’re on your way to creating a bright and secure future for your household.

Experts say setting up a budget should be one of the first things a single mother should attend to. If you’re newly single and used to two incomes, this budget will look much different from ones in the past.

Some, if not all expenses are likely different, and so is the total household income. If you’ve been single a while and are just getting your finances in order, there still may be some surprises.

Because everything is your responsibility, everything you spend should be accounted for as real and tangible expenses. Just as rent or mortgage and utility payments come due every month, holiday and birthday presents are bought every year. Try to account for everything, which lets you plan for it.

You also need to monitor your spending and expenses, but also keep track of your mortgage if you’re paying for one, vehicle loan and other form of expenses, experts says these measure keep you informed and also help eliminate overspending. When you know what you’ve got, it’s easier to make smart choices. Budget software can help you keep track of all spending from all angles.  You can review your budget and see which bills are due next, all through the same platform. With mobile options, you can take that information with you anywhere.

Plan for the Future because everything rests on your shoulders, there’s a lot of planning to secure your future and that of your child. Savings isn’t just important, it’s critical. Every family, single-mother or otherwise, needs several months’ income in savings in case of emergency, such as a lost job or long-term illness. This savings is fundamental. But your child may need braces and he or she hopefully wants to go to school.

Apart from an emergency savings plan, goal-based savings can help make those things happen. Saving money on one income isn’t always easy.A  good budget plan can help you discover inefficient spending habits, and  most people have them, which lets you take control and put that money to  better use in savings. Even small changes add up monthly, and even more so as years pass.

 


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