7 Money-Saving Tips for Single Moms Planing Their Children’s Future
Being head of the household requires diligence, focus, and strategic planning. That means being responsible for previous obligations and considering future goals. Knowing the basics of money management is not automatic and has a rhythm once getting in the zone. It’s something that’s learned and requires attention.
First, you have to allot time for daily recordings and weekly checkups for review. Gather all of your obligations (short-term, long-term, fixed, and variable) that requires payment. Place them in one of the categories for maintenance. Use a binder, spreadsheet, or software such as Billy, XOEO to help you manage the outcome.
Now, let’s get started:
- Minimize acquiring new debt
Once you’ve identified where your money is going and have clarity, decide how you’re going to begin eliminating them. Create a diagram of columns that list each one and state the balance, payment, due dates. Now, start the plan for elimination. Start with the smallest first. When you pay it off, use the amount you were paying to add the next obligation’s payment.
Make the decision to not acquire new debt. The goal is to obtain freedom from debt and access to liberty.
- Eliminate Joint Debt
Closely evaluate any joint debt you may have acquired previously with a partner or spouse and place it as a priority. Going forward, you don’t want to have something hanging over your head that you’re not in control of how it lands. This is one exception to the rule. If the debt is of a larger amount than you can financially handle with an individual debt ratio, consider strategies to pay it off speedily or through refinancing. Release all attachment to material things that can be purchased again. easier to begin this process in the beginning stages. The sooner you relieve yourself of tangible items, the lighter you’ll become.
If you’ve arranged with an ex to split monthly payments, and you’re the only one committed, a partial payment won’t work, and both parties are still responsible. Your credit will still be affected. For credit cards, each of you can transfer agreed on amounts to an individual card and move forward. It’s much easier if you have the agreement stated in any separation agreements or divorce orders to ease creditors if necessary.
- Reduce expenses and make double payments to reduce debt
Now that you’ve aligned your intentions with your ideas, begin from lowest to highest. Some suggest starting with the highest interest rates. It won’t make a difference in the future, because each of them will be a conversation of the past once you begin paying them down. Seeing results is a huge factor because it will cause your enzymes to rise to the occasion. You will begin to feel the financial freedom as your balance sheet begin revealing excess revenue
- Practice discipline
Allocation of your money every month is vital. Start by being aware of the many ways you’re spending money. For example, eating out every Friday night with the girls, going to the movies, fees for the night clubs, and drinks to quench your thirst after dancing can all add up to over $200 a month. Reducing your playtime to once a month and redirecting the money saved can speed up the process. Remember, we’re aiming for a life free from debt and creating a positive future for your child.
- Invest money in a college savings plan with your state
Most states have a college savings plan for children. Prepaying for a college plan can assure the cost of education is locked in at today’s rate. If you have no intentions of moving, paying for your child’s education in advance can be very beneficial. Once it’s paid off, you can relax. In most situations, education and books are covered. I recommend examining the value for your dollar. Make sure the school delivers quality education and has a variety of studies available. Your child’s degree plans may likely change several times before he/she locks in her proposed plan for adulthood.
- Increase your net worth (discover ways to increase your income)
Start a part-time business
There are many internet businesses that are not a scam. You can develop your own using your own talents and skills such as being a freelancer providing administrative support for a small business, developing websites for small business ventures who seek a presence in the business world. Finding legitimate work from home positions are becoming very popular as employers seek to lower overhead expenses and medical responsibility. If you currently have insurance from a full-time employer this could be a great option to create a direct route to freedom and independence. Here’s a list of legitimate part-time businesses for the work from home mom.
Accept a part-time Job
Start a part-time job, if you want to focus on a specific progress time-line. Finding a seasonal job can help you meet your goal. During the months of October – January retailers advertise for seasonal employees. It’s a win-win situation. They’re looking for temporary employees, and candidates are looking for ways to earn extra cash to lavish their loved ones (and in this case, pay off obligations). If you set your sights in the right direction and begin preparing, you’ll be in a position for the right opportunity. Either option can help increase your revenue.
- Schedule periodic financial check-ups
Once you’re in the flow of handling your finances, create space in your schedule to review your habits, plans, and actions. Are you on the right track? Does anything need additional adjustments? Use this checklist to guide you in the direction you’d like to be in. Fine-tune anything that may appear to have shifted and became out of alignment and get back on the wagon. Remember, you are responsible for your life, preparing for your family’s future, and being disciplined enough to make it happen. If it’s to be it’s up to you! Invest in your own future and the fact that you are a single mom will never have to become your financial identity.
