Parenting does not only involve raising children but also managing finances to ensure a secure future for self as well as the children. Single mothers who have a lower and limited source of income should manage their finance even more prudently.
Though much will depend on your current personal circumstances, it is always best to talk things out with an experienced and free debt adviser. If you do it right from the start you will know exactly what to do before matters go beyond control. There are also several other benefits of consulting a debt adviser such as:
- They will bring a positive change
- You will feel more informed and confident
- They will help you to establish a foolproof plan to manage your debt
- Help you to set up an emergency fund and encourage savings
- Help to change your spending habits and
- Keep you on track and ahead of the schedule.
Therefore, you will not feel scared when you are flying solo but make sure that you choose an adviser who is at heart a teacher than an adviser only. This will help you to empower you with proper education and knowledge about making smart investments and move in the right direction. Therefore, look for the following qualities when you select a debt adviser. Such a person should:
- Never judge you and make you feel bad about the situation
- Not suggest ways unknown to you to deal with debts
- Be always happy to talk to you regardless how big or small the issue is
- Find easy and achievable ways to manage your debts
- Check whether or not you have applied for all benefits and entitlements that are available to you and
Most importantly, the adviser must be accessible in any way you feel comfortable with such as online, over the phone or face-to-face.
Planning for the future
To make sure that your finances are in order and you are well prepared to take on the uncertainties of the future, you must get everyone on the same page being a busy working mother. Discuss about the importance of money in life and how too much spending and even a little savings can affect finance management and help in reducing the stress associated with it.
As for you, such discussions will help you to have different opinions regarding debt management if you are swimming in it and struggling to stay afloat. You will know whether taking out a consolidation loan is better to put your finance back on track or learn debt relief options that are available in different forms and from different sources.
- Budget accordingly: Regardless of the salary earn you must have a proper budget designed accordingly. Take out some time to enlist all your income from all available sources and also all your monthly expenses. If you have all these documented it will help you to identify the problem areas in your finance management and develop a plan to resolve it to make it better and more effective.
- Future plan: You must always have a plan for the future that it unexpected and has enough potential to send your finance in turmoil. As a mother, it is your first priority to build a savings account to deal with emergencies, think about your retirement, and do everything that will help you to fall back on when anything unexpected happens.
- Purchase control: You must avoid and stop impulse buying and whenever you have to purchase anything make sure that you buy sale items as it is a great way to save money. Make sure that you stick to your household needs first before indulging on buying anything that you ‘want.’
- Talk about money: Talk about money matters with your family and clip coupons with them to encourage and inculcate good habits in your children. This will help them to develop good budgeting skills as well to help them when they grow older. Make them understand how important it is to pay bills more than fulfilling their wants.
- Allowances and rewards: Consider giving you and your children rewards and allowances if they achieve something that is helpful for your budgeting and savings. Money talks will keep everyone involved and aware of you financial situation and can reduce financial burden and prevent you from incurring debt.
- Reduce debt: Never ignore any payment if you have debt. Make the minimum payment for all loan accounts so that you avoid debt accumulation due to accruing of interest. This is crucial to rectify your credit score if you have poor credit.
- Small goals: Create small goals for you as well as your children that are reasonable and achievable within a specific timeframe. Make sure you work hard to accomplish that goal to set an example to your children.
- Review situation: Always review your financial situation on a regular basis. This will help you to know the necessary amendments to make in your finance plan to continue paying off your debt.
- To enjoy a worry free retirement and put your mind and finance at ease, you will have to bust through the confidence barriers. Some of the barriers that most mothers come across are:
- Not having time to focus on the future: Life of a working mother is one juggling act and there is no time to spare having to do a lot of things within 24 hours only. However, the crux is time which is the most important tool that will help you to build your future. The only way to overcome this barrier is to start saving as early as you can.
- Not having enough money to save: This is another problem that keeps the working mothers from saving for their retirement. Being in debt with no emergency fund is perhaps the worst situation but you still have ways to create such a fund. Curtailing your expenses to free up more income is the most effective way to overcome this barrier.
In short, you will have to diversify your investment and make sure you are getting it right by consulting with an expert.