How To Manage Finances as a Single Mom

Being a mother is a life-changing, enriching experience. But it has its own share of challenges, especially when you’re all by yourself. As a parent couple, responsibilities can be distributed and managed. However, as an individual parent, you have to do everything on your own. This means you don’t have the option to keep finances on the side. 

Managing finances as a single mother involves careful evaluation of the household finances, emergency requirements, future commitments, and individual preferences. It is all too much to handle for a single parent unless you apply a few smart finance management tips. 

The strategies presented below are workable and popular, and they work equally well for single mothers. So, here is how single mothers can manage their finances: 

1. Start Tracking Now!

   When you are taking care of a child, you won’t realize how easily money goes out. By the time it is the month’s end, you’re left with less than expected. Thus, right now, download a good budgeting app or purchase a new notebook and start tracking.

   It is best that you track monthly expenses, but the decision is ultimately yours. Whatever is your period of tracking, make sure you have identified all the major areas of income, expenditure, investment, and commitments. And, with a budget in hand, you’ll be well-positioned to track your money.

2. Think of the future

   Your child is dependent on you until they are capable themselves. And, until then, you’re supposed to ensure them a good and promising life. Toward that, you’ll have to do some math. Think of the future. Say your child is an infant. They will join a school, with the fee only ever increasing every time he moves one class up. Then come college, and we all know how terrifying those student loans can be. You can decide to save up to help him out with his tuition fees. A SIP could be a workable tool that will let the money grow with the power of compounding.

   Or, maybe you want your family to move into your own house. You have stayed in a rented house long enough. But buying a house takes a fortune away, and you cannot empty your bank account over this.

3. An Emergency Fund

   Every time you get your salary, you must earmark a portion of it for an emergency fund. The future is unpredictable. If something were to incapacitate you in helping your children in any way, there should be enough financial resources left to ensure their well-being until you recover.

   Similarly, make sure your children are covered under health insurance. Family health insurance is preferable as it will extend a larger coverage to you and your children. Also, get a life insurance. All of this goes into tackling unforeseen circumstances promptly.

4. Look for welfare schemes

   In many countries, governments have floated welfare schemes for single parents and/or young children. These schemes may be targeted at their general welfare or special needs such as education or sanitation. In India, for example, the central government runs a scheme to assist parents in the marriage of their daughters. Monetary support to a specified amount is extended to eligible families. Thus, it is advised that you look up the official government websites and research these schemes.

5. Multiple sources of income help!

   Your children need your presence for a well-rounded upbringing and care. So, yes, while the juggling is hard, don’t let it come in the way of your emotional responsibilities towards your children.

   If you can experiment with more work, then consider finding part-time solutions. Freelancing, for example, is a very popular mode of income generation. You are your own boss and can determine the terms of your work conditions. Identify the areas where you can work comfortably and then go on exploring the available options.

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