As a single mother, you have the same financial burden as others, but you do not have a partner to share the burden. Because you have to provide for our families and ourselves individually, it is important that you make smart financial decisions. By adopting some of the tips provided here, you will be more confident in dealing with your family’s financial future.
Financial Planning Tips For Single Mothers
Tip 1: Budget
Everyone, no matter whether single or married, need to plan budgets for better financial management. However, if you’re a single mother, the need to plan the budget is larger because of your income should be distributed to a variety of expenses. Thus, the more important for you to be careful in spending the income. Single mothers need to have a household budget planning and discipline in compliance with these budgets.
Tip 2: Create and Start Savings Plan Investing
When making a household budget, do not forget to allocate funds each month for savings plans. This design is called the old “pay yourself first”, which include a sum of money for yourself in the list of monthly expenses. These savings should be included in a less risky investment because, as a single mother you can not take too many risks because you are the family’s financial resources.
Tip 3: Improve Financial Literacy
The biggest mistake that might be done by women is the lack of knowledge penretahuan on matters involving financial planning. Educate yourself by attending seminars and workshops, including a discussion about smart investing and financial planning. This is to ensure that you are on the right track when making financial decisions based on information and knowledge they have learned.
Tip 4: Prepare Emergency Savings
As a single mother, is more important now that you have the stock “emergency”, which is safe enough for living expenses for several months. Some financial experts suggest that, in addition to existing savings, also provide considerable savings for living expenses for at least three months of inventory in the event of something, for example, you lose your job. Invest this money in less risky investments, or unit trusts that you can easily cashed in the event of something unexpected. Other emergency preparedness is also important is insurance, particularly health and disability insurance. If you are a major source of support their children’s education, you need to ensure that adequate insurance is taken to finance your children’s education.
Tip 5: Start Retirement Planning
Time will come one day you will retire. It is therefore important for you to start planning for retirement, regardless of how old you are now. Women should take into account their life expectancy when planning for retirement as there are statistics that say that women have longer life expectancy than men. The best thing to do is to start saving and investing the money in earnest from now on
Tip 6: Children and Money
Teach your kids about money, that is how the money can boost the spirit of man, how the money we need to make choices, and how the money may be pointing us to the wrong path if we are not careful handling. Your children should always have the fear to think what will happen to them if you as their mother is gone. Explain to your children about your financial planning, your investment in unit trusts, insurance, or bequest. All this information can give confidence to your children about the importance of financial planning for the future.
In conclusion, a single mother, you must have a financial plan for you and your children have a better future. If you do not have a financial plan, now is the time to start making plans. Start now! Do not waste any more time in the interests of your loved ones!
Others Tips for Single Mothers