Being a single mother is undoubtedly tough and taking all the financial decisions on your own can be extremely daunting. Managing your money is something that does not happen on its own, it is necessary to be careful about how you decide to manage your money. You have to plan in a proper manner as to how you can manage your finance and thereby work towards achieving the monetary goals that you have. Since you are the head of your own house, you have to be extremely careful especially in all the matters that are related to your finance. For a single mother, it can be even more difficult. However, if you take all the right decisions and do proper things, managing all your funds will be extremely easy. According to www.thefiscaltimes.com, women were not capable of paying all their debts, but men clear 44% of the withstanding debts.
If you are a single mother and you are interested in learning as to how you can manage all your finances, you can follow the tips that have been mentioned below.
Creating a budget
If your husband used to take care of all the financial decisions, it is obvious that you need to start fresh for managing the money in a much better manner. However, if your involvement was equal in all the money related matters, it will not be difficult for you to prepare a budget. However, it is essential that the budgeting process is in a proper place.
The first thing that you have to do is decide the total money that is saved in your savings account and check all the other accounts. You also need to find out where your money has been invested. Keep a note of the expenses that you are bearing every month along with the interest rates. You should also calculate the monthly income and decide the expenses on basis of that.
Next, you have to record the total money that is owed in forms of mortgage, debts on credit cards, car loans, and more. Then, you need to divide all the other expenses into a number of categories like utility bills, groceries, automotive, etc. This will help you in calculating the net worth in a simple manner. In the end, it will be easier for you to understand if you are overspending or you are in the perfect border of spending money.
Stashing away emergency funds
It is obvious that since you are a single mother, you do not have anyone else who will make contributions to your household income, and this is undoubtedly something, which makes saving money extremely difficult. However, if you stash away money, which will be capable of taking care of at least 6 months of the monthly expenses, it is going to be of great help to you. An emergency fund is known to act as the safety net in cases when you might end up losing the job. Furthermore, it can also be helpful when there is an emergency situation.
If you are wondering as to how you can save extra money, it is always great if you can look for different ways in which you can earn money and bring down the expenses by getting rid of the unnecessary expenditures, shopping in a wise manner, using the freebies, and looking for the entertainment options of low cost. This will help you to save a great deal of money at the end of every month, which you can stash away into your emergency fund. In order to know how you can manage all your debts in a proper manner, you can go through the national debt programs.
Planning in advance for all medical costs
There is no doubt to the fact that the healthcare costs can be extremely crippling, especially during situations when they do not come in an announced manner. Even though medical insurance is costly, you cannot deny that it is a necessity and is going to cost less than all the medical procedures as well as hospital stays, that are completely unplanned. Check with the person you are working under and find out if he offers health insurance, and ensure that you sign up if he is offering one.
If your income is not enough for affording the premiums, you can opt for the plans that can cover the regular health checkups. Even if you find that difficult, it is important that you try to get your kids covered.
Getting life insurance
Just as significant as your medical insurance is, your life insurance is also crucial, especially when you are the only bread earner of your family. When you decide to get life insurance policies, they are not only going to protect your child and you during emergency situations, but they will also help in providing all the essentials that your kid requires, until and unless he starts working on his own.
If you are looking for the most economical policy, you can go for the term policy. However, you need to think about a number of things before you decide on any particular policy. You also need to understand that though the short-term policies look attractive, it may not be easy to renew them. You need to understand if you require the proceeds that you have selected for covering the living expenses or paying the mortgage or the college fees of your kid. Be extremely wise when you are taking your decision.
Preparing your will
Preparing your will help in securing the financial situation when your kid starts selecting his future goals. Making a will is undoubtedly a great monetary decision, which you should take. You also need to choose the executor for the estate for paying all the necessary fees, taking a proper care of your kid, and one who is going to ensure whether the child is receiving the property and money that you are leaving for him when he is of age. Ensure that you are not naming more than a single executor, or it can be extremely disastrous for your kid in the future.
Conclusion
There is nothing to worry if you are a single mother and you are not exactly an expert when it comes to managing your finances. Follow all the tips that have been mentioned above, and you will definitely be able to secure your child’s and your own future.