A common question single mom often asks is how to manage their financial condition while raising a child on their own. Parenting is hard as it is but when you take on the journey of single parenthood it is even more difficult to pay off your debt, plan your future and save more money.
If you are a single mother who looks for resources for single mom to manage her money goals then there are a few tips you need to know. Lack of proper financial planning can result in mismanaged financial decisions causing more anxiety and stress thereby affecting your ability to be the best mom. Here is what you need to know to learn the fundamentals of financial planning for single moms.
Earn as much as you can
Most of the single moms raise their kids with little or no financial help from their partner. On an average an American single mom receives around $ 300 per month as child support from the dad. We all can tell the amount is not enough to fully support the child financially. This is why single parenting is such a huge financial responsibility. You need to have strong earning potential to avoid being statistically poor. You can consider hiring a babysitter so that you can get an advanced degree to progress in your career. As a single mom you have to take risks to boost your earning potential as much as possible.
Only buy what you need
As a single parent for the family you have to have a financial question so that you can meet with emergencies prepared. The first step towards financial stability is to live within your means, say for emergencies and start paying down debt. When you are a single mom it is often that you feel the pressure of two-parent families and would want to pursue their lifestyle. You might want to go on vacations, live in an affluent neighborhood or maybe you want to buy things that you really don’t need. It is a debt trap that you need to avoid and only live a lifestyle that you can afford. Build your own lifestyle on your own terms and within your means.
Pay off debt — for good
When you are raising a family on your own getting into debt is very easy. An easy solution to keep out of debt is to follow the rule,’ if you to finance it then you can’t afford it ‘. Spending on your food, utilities, electronics, clothes and travel is important but do not overdo it. Try to avoid loans such as home mortgage as you really don’t want to own a house in the early phase of your single parenthood. The less you will owe to people the easier it will be for you to reach your financial goals and build wealth.
Get protection for yourself and your child
There are some protections that you must have. Like do not ever skimp on your life insurance. When you are a single mom struggling to meet the ends financially, then you can be tempted to skip the insurance cover all together. It is not an easy experience to think about your own mortality when you are raising a family alone. But this very particular severity requires you to carry life insurance so that you will be assured that your kids will be well taken care of by other members of the family. Your proper insurance will ensure you your kids get:
- Extra childcare they will need
- Get to enjoy life with experiences like music and sports lessons
- Get proper education and attend college
- Help your kids buy homes, plan their wedding etc.
Set big goals
One of the major mistakes you can make is to compare your life with that of your neighbors who are doing better financially. Do not fall for that lifestyle and set small short-term financial goals such as saving a little cash every month.
Single parenthood doesn’t mean you have to limit yourself from setting glorious and scary goals. Dream big, it can be a perfect career or a perfect home, this will make you more committed and diligent and you are more likely to achieve them.
You will be really surprised to know what you can achieve as a single mom, so never hold back.