Managing your finances can be a difficult job and being a single parent doesn’t make it any easier. While you may be newly single, or you’ve had to deal with managing your singular income for many years, it doesn’t get easier if you don’t clue yourself up on expenses and savings. Saving money may not even be an option for you as a single parent but allowing yourself to stay in control of your finances will mean you will be able to stay happy and financially stable for a long time. A solid financial plan will help you to reach any money goals or targets you want. In order to manage your finances successfully as a single parent, here is a list of tips you may want to consider.
Earn as much as you can
Being a single parent means you will have a smaller income, and this means that when you get a chance to earn money, you should go for it. Earn as much as you can in order to afford luxuries and treats but equally, don’t burn yourself out. If you’re free to earn more money and your time isn’t taken up by children or others, definitely do it! This applies even if you’re earning an extra £10/20 for staying behind for an hour to two at work. Smaller amounts of cash add up quickly and having more money will allow you to manage your expenses easier.
Create a Monthly Spending Budget
The only way to successfully manage your spending habits is by knowing where all your money is going every month. Having a monthly guide to look at will show the expenses clearly, from food and transportation to childcare and savings. If you love colours, you can create colour codes for each category just to make this boring activity a little more fun. Be sure to account for anything extra that may unexpectedly arise during the month though.
The key thing to keep in mind with borrowing is affordablility – it’s essential that you know that you can afford to make repayments, so pay careful attention to interest rates and terms and conditions before taking out any kind of loan. Also thing about the sustainability of your borrowing. If you’re borrowing money for a one off purchase or emergency, with a clear plan to repay it, then fine. If you’re borrowing every month just to make ends meet then that’s a much more worrying situation and there are clearly other factors that need to be addressed. Check out all of your options carefully, including lenders like Polar Credit.
For those single parents who have some savings or extra cash, investing in property is an easy money maker. While the initial few weeks of investing can be stressful, when everything is set up in your home and you decide to either let or rent it out, the money practically makes itself. Stay-at-home mums can benefit from investing in property as the longer you do it for, the more money you can make. RW Invest, a property investment company, can offer you advice on investing in property. This is especially helpful for anyone who has never considered or thought about property investment before.
Compare Prices Online
Online comparison sites can help you save money and find deals you may not have ever thought about. Get into the habit of shopping around for the best price online before you make any purchases, this includes insurance as well as restaurants and even your food shop. If you’re wanting to save even more, there are plenty of coupon codes available on these sites too. Sometimes, stores have coupons with 40-50% off products but don’t advertise these savings, so you have to look for them yourself.