Having a financial plan as a single mother can seem impossible. You already have so much on your plate and money can be on of the biggest hurdles to overcome. Having a plan is necessary and if you want to have a thriving financial life you have to have one.
Budget Your Monthly Expenses
The first step to growth is knowing where you are right now. Your budget should be somewhere that is easily accessible for regular check-ins. Try using a small pad you can keep in your purse, the notes on your phone, or a budgeting app.
Take note of every expense. Rent/mortgage, utilities, groceries, travel expenses and more. Write down all the basics that keep a roof over your heads and food on the table.
Be realistic. Most of us have things we buy that are not necessities and omit them from the budget because we could easily get rid of them. The problem is, we don’t. We keep spending money on certain items and then wonder how we could have gone over budget. Add everything to your budget!
Add the Netflix account, the mommy-daughter pedicures, the weekly tub of ice cream . . . everything. If you are spending money on it regularly you need to write it down. In this way, when it is time to cut things out you have a realistic list of where your money is going.
Not sure where your money is going? Save your receipts, check your bank account and credit card accounts. I know it can be scary to look at a record of unnecessary things you buy, but you need to know if you’re going to do better. Create categories and write them down. Add up how much money you’ve been spending and start trimming away things you don’t need.
Start Saving Money
The one thing we can always expect with children and adulthood is that unexpected things will happen. School projects, flat tires, friends’ birthday parties and busted pipes all come with a price tag. You never know when these things will spring up, but they do and can do damage to a budget.
After documenting and trimming down your expenses, decide on an amount to start saving each pay period. Even if you can only afford to put away $10 at a time, it adds up and will be accessible when you need it most.
Having money put aside can also help keep you from accumulating debt. There are some unavoidable circumstances like the loss of a job or emergency room visits, but as soon as you can, start saving as much as you can so when life throws curve balls they will be less troublesome.
Free Things To Do With Your Kids
Time with your children is priceless. It can be costless too! There are many free things to do with your kids available in your city. Check your local libraries for story time, museums often offer free entry once a month and public parks are always a hit. Many cities have animal sanctuaries that are free to tour as well.
Try planning a picnic, or take a scenic tour of a beautiful neighborhood. You can host a talent show in your living room or act out your favorite bedtime story. Relay races, hide and seek, cooking a meal together, and scavenger hunts are all great for quality time together while minding your pockets.
You don’t have to spend money to have a good time with your child. Spend time on shared hobbies or learn a new skill together. The time together is what's important, not the price tag.
Teach Your Kids About Money
You can teach your kids about money from an early age. Give them jobs around the house and pay them in “fun tickets”. You can use monopoly money, playing cards, or paper you both cut out and design together. They can cash in their “fun tickets” for tv time, small cakes, or that game you don’t really like playing, but play it anyway because you love them.
As they get older you can give them an actual allowance and show them how saving their money pays off in the long run. Talk to your children about needs versus wants. Explain the importance of always saving a certain percentage of their money and not spending all of their money on a want. Show them how to save toward a goal and praise them when they execute.
You want your children to have a good relationship with money. By showing them that they can save toward a goal you help foster the idea of abundance. They will know that money is coming and they don’t need to fear that they will go without. Impulse buying can stem from a fear of lack. This may be something you are still working on yourself, but you can teach yourself and your children the idea of abundance at the same time.
Set Financial Goals
You’ve set your budget and know exactly where you stand. Now is the time to set goals. Want to buy your first house? Need a new car? Want to save $5,000 by the end of the year? Write down exactly what your goals are then break them down into bite-sized chunks.
The goal itself can seem impossible, but when you write down all the steps and tackle them one by one you will find yourself achieving goals you never thought possible.
When we put goals in place we set the course for our lives. A lack of goals keeps us open to whatever life throws at us. Take control of your life by setting goals and completing the tasks necessary to accomplish them.
Good Credit Card Usage
Make a point to only spend what you can afford to pay back in full. Credit cards come with some of the highest interest rates. If you spend more than you can afford to pay back you end up spending much more on an item than its original price tag, thus creating a cycle of debt that can be hard to get out of.
Keep your credit card utilization under 30% of the total balance. Not only does this keep your payments manageable, but it reflects well to the credit bureaus. Credit cards are a great way to build credit and keeping them under 30% utilization can increase your score even faster.
Most credit cards have points or cashback. Using your credit card can be great for its rewards. Use your card responsibly and take advantage of the cashback, or points to make purchases for the home, pay a bill, or plan the family outing you've been wanting to go on.
Find A Job That Pays You More
Easier said than done? Maybe. It’s 2022. Jobs are abundant! You have accumulated a set of skills over the years that are very marketable. Revamp your resume and put yourself on the market. You don’t have to stay stuck in your current career. You have options and can take advantage of the hiring frenzy that is now available to us.
Before leaving your current job, try asking for a raise. Be sure your work ethic is something your employer appreciates so you have a foot to stand on when asking for an increase. If that works, wonderful! Look no further. If not, get out there and expand your horizons. You can look for something in the field you are currently in or you can look for something brand new and expand your skillset.
Getting a second job can be good for your pockets too, but as a single mom, it is difficult (if not impossible) to find the time to work two jobs. We have to find additional child care, additional snacks, additional transportation, etc. The second job could become its own expense. Sometimes, this can be doable and if it makes sense for your lifestyle then go for it. Beware of burnout though.
Consider speaking with career counselors in your community, attend local career fairs and check out local staffing agencies. There are many resources available to help you land a higher paying job and the only way you’ll land it is if you go for it.
Debt Management
Debt is an ugly dark cloud hanging over our heads. It is hard to feel like you’re making progress when the debt collectors keep calling. Just like you wrote down everything for your budget, write down all your debts. Put a realistic plan in place to knock them down one by one.
You can pay a little on each debt or plan to tackle one at a time. Ignoring them has not made them disappear and they’ll still be there the next time you look up.
Your debt is wreaking havoc on your credit score. You may want to consider bringing past due accounts current and then tackling closed accounts little by little. Make a point to not take on any new debts while you’re working on bettering your current situation. This may not always be possible, just make sure your new purchase is manageable while you knock down old debts.
Each cleared debt gives you room in your budget. The budget may be tight right now, but with dedication to clearing up old bad decisions, you are giving yourself breathing room to create a better life for yourself and your children.
Become More Frugal
We all spend money on things we want and then kick ourselves when we come up short on something we need. Is the right choice to only buy necessities? Sometimes! I know it can be exhausting to go without treating yourself, but for a time it may be necessary. I do believe you should treat yourself, you just have to find a budget-friendly way to do it. Make your treat a financial goal. Save toward it so the expense doesn’t hurt down the line.
Take a look at your subscriptions. Do you have a gym membership or massage membership? When is the last time you actually went? Subscription models are designed to be forgotten. Many people subscribe to things they never use and the money comes out of your account every month before you even know it. Cancel them! You know deep down you are not going to use that subscription. And here’s the thing, just because you cancel it doesn’t mean you can’t sign up again once you’re actually ready to go to the gym or get that massage. Save the money now and sign up later.
Cook at home more. I know ordering out saves a ton of time, but making your own meals is much cheaper. While you’re in the stage of getting out of debt or saving toward a huge financial goal, making your own meals is critical. The other plus side is that it’s healthier for you and your family.
Check In Weekly
Keep saving receipts and looking at your bank and credit card accounts. Take note of what you spent and compare it to your budget. See if you stayed on track or fell off the wagon. Do not expect perfection. We all mess up. Highlight the unnecessary expenses and do better next week. Don't forget to celebrate your wins as well (within budget of course lol). Look at how much you've tucked away or the debt you’ve paid down and know that you are one step closer to achieving your financial goals.
Look at your budget often and make adjustments as necessary. As you look at your spending habits you may find that you left something off that needs to be added. You may have a decrease in a monthly bill that allows room for something else. Your goal shouldn’t be to live an endlessly boring life, but to be able to do more for yourself and your children down the line.
A Budget Says Yes To A Better Life
When I was at my lowest, I realized that if I continued doing the things I’d always done I would continue to have the life I’d always lived. I was financially drowning and I needed to come up for air. I had to make the hard decisions necessary to get myself and my son out of poverty. It was difficult and there were many cry sessions in my closet, but I did it. What I know for sure is you can too!
What do you think it will take for you to come up with and stick to a plan? Comment below.
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