Best Money Management Tips For Single Mothers

Raising a child as a single mother is not plain sailing, especially in the beginning days of parting when it gives you a hard time emotionally, physically and mentally. It may or may not be completely comprehended what your child is going through during and after your separation. Not to mention, things will sooner take a turn for the better, but financial difficulties perpetuate.

You are more vulnerable to financial concerns, threats and fear if you have never been in charge of money. When, out of the blue, the burden of managing money and making decisions around it falls on you, you will naturally become floored.

Now, you are in charge of each penny you earn. It makes sense to keep track of your budget. Here are some of the most crucial money management tips for single mothers.

1. Keep a close watch on your outgoings

It can be daunting to raise a family with one income, but advanced planning can make it happen. You will have to draw up a budget and stretch it to meet all of your expenses. Make sure your budget has room for paying down all expenses such as mortgage or rent, utility bills, grocery, childcare costs and other recurring expenses.

If your budget has already blown up, you will have to find ways to whittle down your expenses. You can do nothing about fixed expenses, but pay heed to phone and broadband plans, subscriptions, grocery budgets, etc. If debt payments are eating up your money, you should talk to your lender. They might help you by revising your repayment plan. Bear in mind that this will reduce the size of your payment, but you will end up paying a lot more money on interest in total.

Keep tabs on your expenses so you know where you are spending. Use a budgeting app that lets you know all of your expenses in one place. All you need to do is to link your pay account to it. However, to get a complete picture of your expenses, you will have to use your debit card. If you use cash for your transactions, make sure you jot down where you spent every penny. At the time of assessing your expenses, you should ask yourself the following questions:

  • Where is your money going?
  • Is there any expense you can cut down on?
  • Are you spending money on things you do not need? For instance, magazine or gym subscriptions?

By tracking down your expenses, you will be in better control of your money.

2. Save money while raising a family

Whether or not you are earning one income, you should try to save as much money as possible. Here are some of the ways how you can save money:

  • Cut down on your electricity bills. Put lights and fans off when you are not in the room. The central heating system should be used as long as the room is not warm enough. Then you can put it off. When the temperature dips again, you can turn it on. You will be able to save a lot of money on your energy bills.
  • Avoid using a tumble dryer because it sucks too much energy, and as a result, your electricity bills become so high. You can save hundreds of pounds when you dry your clothes in a clothesline.
  • If it is too cold, you should try to put on a layer of woollen. You will have less need for heating, which helps save a lot of money on your energy bills.
  • If you owe debt like loans for bad credit with no credit, you should try to seek some help from your lender. They will likely put you on a small repayment plan. Though this will cost you much more than the shorter repayment plan, you can easily make payments without fearing the risk of falling into debt.
  • Borrow money only when you need it. Do not take out a loan for any discretionary, essential, recurring expenses.
  • Borrow films, books and music from a local library if you cannot buy them. This is a better alternative to funding such expenses with loans and credit cards.
  • If you are planning a day out to shop or have fun in a theme park or cinema, look for deals and vouchers.
  • If you travel by train regularly, consider a monthly railcard. This will help you save up to 60%.
  • Eat at home. Make sure you, more often than not, prepare meals at home. Dine-out and takeaways once in a blue moon are fine.
  • Take advantage of Christmas deals and think carefully while signing up for a membership at any retail store.

In addition, you should take advantage of any tax benefits. Talk to a consultant who will let you know how you can gain benefits on your taxes.

3. Plan for the future

Even if you are not struggling with your finances, it is always advisable to set aside as much money as possible. As a single mother, it is your responsibility now to look after yourself as well as your children. Do not forget to plan around future expenses such as your children’s education.

As your expenses will go up in the future, you should think of increasing your income sources. Try to get a job with a higher pay. If that is not possible in your case or you are biding your time as of now, you should grab freelance work or a part-time job. Money that you earn should be saved so it can come in handy at the opportune moment.

However, do not let it be idle. Try to save this money to beat inflation. It is not necessary to invest in stocks if you are loath to stock investing. Consider safer alternatives such as a fixed deposit.

The final comment

Single mothers can be in charge of their money by being a bit strategic about money management. Use the aforementioned tips and see what you can do.

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