Financial Tips for Single Moms
There are tons of financial tips out there for single moms. Sorting through it can be overwhelming. Let's simplify and look at some possible actions single moms can take to improve their financial status.
Money isn't everything by any means, but it surely eases your stress and anxiety and gives you choices you would not have. So, it is worth reviewing your options and considering the best actions that fit your situation.
Can single moms budget successfully?
The percentage of single women who are heads of their households is high. There's no safety net and you are responsible for yourself and your kids so you must start by setting up a realistic budget. Step two is to live within that budget!
Avoid any extravagances and use your money wisely by only buying things you need and can afford.
Rather than going out with your friends, you can suggest getting coffee together or a potluck dinner. Going out is one big expense most people have that they can reduce. This includes those stops at fast food places that can really add up as well as be very unhealthy.
What single moms should consider being ahead financially?
Did we say something about a budget? It is amazing how few people truly have a budget and actually work it and keep it updated. Less than 20% of people do it. Don't be one of them. It is proven that active budgeting works!
Stop comparing your situation to others. They are where they are. Focus on what you can do even if you're struggling to make ends meet. Start by setting small, achievable goals like paying off your smallest balance credit card or putting a little aside for an emergency fund that you must have.
You should also set long-term goals but understand that you need to define all the little steps to get there. There are plenty of success stories out there and they started with goals and taking small steps with a long-term objective in mind.
Thousands of single moms have already been there and done remarkable things so do not be discouraged.
Some financial tips for single mothers
Many single moms are in debt but are paying on them in the wrong way. What do you say? I have to pay for them all. That may be true but keep in mind there are bills you should pay as much as possible on and those you should pay as little as possible. Simple example, you have credit card debt and medical bills to pay. You need to make a payment on each, but the medical bills have no interest, so pay the minimum. Pay the most to the credit card with the highest interest rate - it may be over 30%! That extra interest is costing you hundreds if not thousands a year.
Don't be afraid to use coupons and rebates and specials when buying anything from groceries to clothing. Everything goes on sale at times during the year, except for food, try to buy everything else on sale only. Never pay shelf prices.
Are there financial tools that can help single moms?
There are many good budget building sites out there including youneedabudget.com, mint.com, and quicken.com. Your bank may also have free tools and budget help as part of their services - for free. Track everything, yes everything! The better you track the more control you have over your budget and the more success you will have over time.
The best approach for single moms when it comes to building credit and paying off debts
If you are truly "in the hole" almost every month then seek out local career and financial counselors in your community. You may need and want to change your career and may be eligible for free training and placement.
Consider going to career fairs in your area. There are a lot of open jobs right now and you do not have to go into food service to find something you like. Figure out what you need to earn in order to get to a monthly positive cash flow and you will be on the road to a better future.
If you are a single mom needing quick cash to cover an unexpected expense like a medical bill, rent, utilities, etc. you may consider an emergency payday loan. Do not take on such a loan except for emergency circumstances and if you are sure you can repay when it will come due.
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