Single Mums & Money!

One of the biggest challenges for a single mum is the financial impact. But no need to stress, here are some simple steps you can take to feel confident and take control of the financial future for you and your family.  

1.     Create a money plan.

It’s time to take a good look at your taxable income, your spending habits and where you could make some changes.

We recommend being guided by the budgeting 50-30-20 rule (insert link to separate blog). This rule will help you breakdown your taxable income into three separate sections;

-        50% to expenses like rent/mortgage, groceries and bills.

-        30% to you to spend on wants like coffee

-        20% to your savings.

Don’t stress if those percentages aren’t achievable for you just now, you can only do what you can. But by trying to work through some other budgeting hacks (insert link to shop smarter blog) you will overtime be able to obtain those ratios.

2.     Pay off your debts

If you have any credit card or loan debts, the first thing to do is get them paid off and stop using them.

We recommend;

-        Grabbing a pen and paper and listing out all your debts, the interest rates and the balances.

-        Create a plan of attack and choose one of the debts to focus on paying off.

-        Take a look into your budget to see if you have any spare money available that you can put towards paying off that debt.  

-        Continue to pay the minimum or more on each debt.

-        Make sure you are paying your bills on time to avoid any further late fees.

-        Once you have paid off the debt you were focusing on continue onto another. It will feel good to start crossing them off your list!

3.     Save for emergencies

Since you and your family has only your income to rely on, it is important to put aside savings for any financial emergencies. These unexpected predicaments could include the loss of your job, your house or car needing maintenance, or needing to pay for an emergency medical bill. We recommend trying to save four to six months of income over time to ensure a bulk sum of cash is readily available for when these emergencies occur.

This is also an opportunity for you to look into your insurances to make sure you and your family are covered.

Most importantly, remember that money isn’t everything, but that said; feeling in control and confident with your finances can make everything (during your busy mum days) a lot easier.

For more assistance with your financial goals contact us here!