Being a single mom comes with its own unique challenges and certain stigmas around it. Do you struggle in managing money as a single mom? Is it a money in money out kind of situation for you?
You may be working hard but you’re not making any financial progress, you’re in the same place month in , month out. Here are some smart ways of managing money as a single mom.
Automate Your Savings
As a single mom, you have to make sure you save for both long term and short term. It may be very hard to save money as a single mom but saving as little as you can is better than nothing. What automation of saving money does is it ensures you save consistently. You can automate your savings account by setting up a standing order. This is one of the best ways of managing money as a single mom.
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Budget Your Monthly Expenses
As a single mom, you should always ensure you have planned for every single coin in your paycheck. Creating a budget can be a challenge and can be intimidating but it is the best way of ensuring you do not waste any money. This is a smart way of managing money as a single mom.
When you have a budget it also ensures that you have control over your money and not the other way round. Creating a budget makes it so much easier to track your spending. This way you can start making adjustments where needed and make financial plans accordingly.
Live Frugally
Once you start tracking your expenses you can now tell where a huge chunk of your paycheck goes to. You can see where you can make some adjustments. Be very intentional with your spending. If you want to be financially stable and independent you have to shift your mindset. As a way of managing money as a single mom, you have to live frugally. Living frugally isn’t about living cheaply or denying yourself of the finer things in life, it simply means being mindful of your financial choices which will in turn allow you to save more and pay off your debt.
Pay off your debt
As a way of managing money as a single mom, eliminate your debt. Debt can cause a strain on your budget and saving goals. Make sure you prioritize managing your debt. You can start by paying off the debts that are charging you high interest then work your way down. This is not to say that you should not request a loan but if you’re getting any loans make sure they’re for investments or business. All in all, you should aim to get out of debt.
Emergency Fund
An emergency fund as a single mom is very important because, in the event of any kind of emergency, you do not have a partner to turn to for financial assistance. This is why as a way of managing money as a single mom it’s extremely important to always make sure you have an emergency kitty. Having an emergency fund will also help you stay out of debt.
Stop fixating on bad financial decisions
At one point in our lives, we have made bad decisions when it comes to our finances. You should not beat yourself up every day for the mistakes you made. You should stop fixating on bad financial decisions that you made, stop thinking about what could have been, and start focusing on your financial life right now.
It is impossible to go back to the past and correct your mistakes, your past financial decisions should not paralyze you. Of importance is that you learn from your mistake and you learn ways of managing money as a single mom.
Get financially savvy
Educate yourself on finances, investment, budgeting and saving. There are lots of free education materials on the internet and you can utilize them wisely. Managing money as a single mom may require more than you think. Research on how you can start investing because in the long run it will pay off.
Have a side business
If you’re a single mom, you will need to earn extra income, start looking for ways you can earn extra cash to help you on your way to financial freedom. Nowadays, there are multiple businesses you can start with little to no money. It just takes patience, perseverance, and consistency to make it work. Having a side hustle makes managing money as a single mom more bearable.
RELATED: Businesses you can start with little to no money
Set Financial Goals
Set short term and long term financial goals as a way of managing money as a single mom. You need to set the financial goals for the financial situation you want to be in. This way you get motivated to start a side hustle or look for a second job. Once you set your goals, you have to work smart for them in order to achieve them. If you want to own a house in 2 years or 5 years, set it as your goal and start working hard for it.
Embrace that you are a single mom and let go of any stigmas around single moms
Some single moms strategize about how the next man will be their meal ticket to a better financial situation. If you’re one of this single moms you need to make sure you can hold your own. Embrace the fact that you are a single mom and it’s okay. Take charge of your financial situation to ensure you are financially stable and you can provide for your child. That’s all that matters.
There’s also stigma surrounding single moms from family members and friends. They start hinting about marriage and finding a man or settle for a low paying job. As a single mother, you don’t need that in your life, you need people with positive energy. Just focus on managing your money as a single mom. Single moms may be poorer and more stressed out according to some statistics but it should not define your fate. Breakthrough the mold and get financially independent for your child’s sake.
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