As single moms and single dads, money saving tips are worth every penny! Here are 10 tips to help single fathers to make ends meet.
10 Money Tips for Single Parents
| Author: Samantha Gregory | Posted: 06/21/09 | ||
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1. Develop a spending plan to avoid overspending. The word budget conjures up the feeling of restriction and lack; so I like the word spending plan. When you develop a plan you feel more in control and it’s easier to stop overspending. Take into account everything you need first. List it all, and then assign a dollar amount to each item. It may take looking at past spending trends to get an accurate view of how much you spend for bills, food, clothing, car/transportation, and entertainment. If you bank online you have a ready source for seeing where your money goes.
2. Involve your kids in creating and maintaining a budget. They should know how the money is spent so that they can be more sensitive to money limitations. The older they get the more money they will want. When they know approximately how much money is coming in and how much has to go out to maintain a life they will be more sensitive to your role as provider. This might encourage them to find ways to earn money on their own.
3. Have a savings plan to prepare for emergencies. Putting away money for a rainy day is very empowering (I’m speaking to myself here). It is hard to predict when an emergency will happen that requires a large chunk of cash. If you have money saved that is specifically for these times your stress level will go way down. You will not feel desperate and resort to uncharacteristic behaviors. It is recommended that you have $1k-3k in savings. If you can manage to save at least $500 that is better than nothing. Open up a separate account for your rainy day fund. Use your tax refund, raises, or other windfall of cash to fund this account.
4. Join a Credit Union to avoid outrageous bank fees. Your money will earn interest over time. Banks are notorious for nickel and diming people to death. There is a fee for everything from checks to account balances below a certain amount. Forget about all of that and join a credit union. There may be one available through your employer, your state, or your school. Join as soon as possible and rest easy that the money you deposit will start making money for you instead of disappearing because of the fees. (look for credit union website)
5. Get child support payments direct deposited. There is nothing worse than waiting for a check to arrive in the mail from your ex. It is often a hit or miss deal and the frustrations that build are not good for you or the kids. If you are getting support through the state you should have that option. If you have an agreement with your ex insist on having the funds transferred to your account. The money will be taken out automatically so you won’t have to worry about getting the funds on time. If you are not getting child support please find a way to get it. For more information read my new ebook on the subject.
6. Find a way to make extra money from your skills and talents. I talk about this on my blog and now I am talking about it again. It is almost a sin to not have multiple streams of income. It doesn’t have to be consistent at first but enough to give you extra money for the special thing you want to do or have. You don’t have to have an MBA to run a business but you do need something you are passionate about or just be able to see what people need/want and fill it. Check out my blog for side hustle ideas.
7. Change your thinking about money. For many people, especially single moms, money has many negative connotations. You don’t have it, there is not enough of it, and you don’t know where the next batch is coming from. We have a tendency to think that it is out of reach all of the time and we struggle with it. The truth about money is that it is simply a tool to get the things we need and want. Of course not having it and thinking about your lack will not make it come to you any faster. When you change your thinking about money, see its true purpose, and realize it’s abundance you will have more of it. Whenever I have to pay a bill, write a check, or spend money I keep in mind that there is more where that came from. I will have more, not because I am doing anything special but because I just know that it will come again. Sometimes we get so caught up in holding on to it with such tight fists that we fail to realize that a closed hand cannot receive more.
Samantha Gregory is a writer and motivational speaker. Visit Rich Single Momma to learn more about effective ways to manage your financial life as a single mom. She is also the author of 100 Secrets of Successful Single Motherhood: An Inspirational Guide for Single Moms.
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