Smart Financial Moves for Every Single Mom
It is tough to raise kids on your own. You have to play both roles in your children’s life and on top of that you also need to be able to provide for your children’s financial needs.
As a sole provider and breadwinner, it is your responsibility to ensure your children’s financial security today and in the future. How do you do this without losing your sanity? Simple. You just have to know how to create a financial plan for single moms.
You might turn a blind eye at this pressing need, but a financial plan is as important as keeping your job. You may have a job now, but preparing for any eventualities is the key to financial security. Do not let your busy life prevent you from making a wise decision and find out how to create a financial plan for single moms because this will definitely benefit you and your family if not today, in the future.
Here are some top ideas that could help you create your own financial plan today:
Monitor Your Expenses
Money can easily disappear especially if you don’t keep an account of everything you buy. If you don’t keep a close eye on your expenses, chances are, your income will mostly go towards paying the rent or the mortgage, child care, food, health insurance, clothing and petrol for your car.
If you keep track of the things you spend your money on, you will also be able to look for ways to save and keep those savings for the rainy day. There is a really awesome web application, made by Mint.com, that automatically helps you learn how to setup a personal budget plan. It does everything for you so you can track where every last penny is going.
Involve Your Children in Financial Planning
Your kids are never too young to have a discussion with regarding the family’s financial situation. They need to develop an understanding, at a young age, how to properly manage your funds and your income. This will also help them make adjustments and encourage them to cooperate with you on your efforts to save money and reduce unnecessary expenses.
Involve Others in Child Care
We all know that hiring a nanny or a baby-sitter to look after your kids while you go to work costs a lot of money. If you put them on day care, this will cost you some money as well unless you have another alternative. Why not turn to your family and friends for some help. Some of your family members might be able to spare some time to look after your kids. However, if you’re not living anywhere near your family, then look for some non-profit organization that has day-care facilities or ask the Human Resource Department of your company if they have programs for the day-care of employees’ children.
Go After Tax Breaks
Another approach on how to create a financial plan is to do your research and check which child-care tax credit you qualify for as a single working parent. This will depend on your current income and how much credit is allowed to be deducted.
Bring a List of Things To Buy When Shopping
It is so easy to get tempted to buy on impulse when you go to the grocery or to a store. One way to help you stick to your budget is to create a list of the things you need and bring it with you when you shop. This way, you will have a priority of things to buy before you start putting things on your cart that you might not really need.
Explore Other Places To Get Your Resources
Libraries and video stores have a list of movies you’d like to watch and books you’d like to read. As a single mother, this may be the only accessible form of recreation for you and you wouldn’t want to deny yourself that. You don’t really have to. You just have to look for ways to save and one way on how to create a financial plan for single moms is by utilizing places such as libraries to get the resources you need without spending a single cent.
Maximize Your Savings
It doesn’t matter whether you can only save a small portion of your monthly income. The important thing is that you actually save. And one way to maximize your savings is by choosing a form of investment that will appreciate in the next couple of years. Saving up for your kids college tuition is one way to maximize your savings. When your children go to college, you are investing on their future and this will have its rewards in the end. You can also choose a retirement plan that will give a greater value to your money in the next few years. If you need to, consult a reliable financial adviser or consultant for this decision.