There’s every chance that when you first live life as a single parent, your finances will be stretched and you’ll be watching every penny. But it doesn’t have to stay that way. I was lucky to find a great budgeting program which allowed me to plan my finances over 12 months. That way I was actually able after a few months to start putting away a bit of money as a safety net. An online search will come up with lots of apps and other solutions to help you get a grip on those dollars.
So grab a pen and paper and spend 10 minutes to create an action list. If you are the sole source of income for your family, it’s doubly important you get smart about managing your money. In the end, the reality is that no matter what your income is, you need to spend less than you earn in order to build up a savings fund…
Being a single mum or single dad may mean double the parenting duties, but it also means you are free to make some quick decisions on your own about your money, or lack of it. So tick these three boxes off your to-do list:
Check your insurance needs – get in touch with your bank, superannuation or financial planner and discuss your lie insurance needs, including any life insurance.
Build a savings fund – figure out your monthly expenses and see where you can make some small savings. Then start stashing away small sums bit by bit so you have a buffer for a rainy day.
Make a will – this does not have not be expensive, there are kits available to get the essentials down on paper. As well as any financial issues, name a trusted friend or relative as a guardian to execute the will if the child is a minor. And address the issue of who would look after the kids if anything should happen to you.
Plan for the future because that’s where you are going to spend the rest of your life. – Mark Twain