4 sure ways to handle your finances as a single parent

david nganga

June 23, 2018 5:03 PM

Here is a single parent’s guide to financial planning

Parenting is never an easy job and it becomes more difficult if you’re doing it on your own.

As a single parent, you face many challenges not the least of which are the financial ones.

You are responsible for creating a stable financial future for yourself and your children, a burden that can often seem overwhelming.

However, smart financial planning can be the key to setting yourself up for a more comfortable lifestyle while taking care of necessary expenses without drowning in debt.

Here are some financial tips on how to best plan for the future:

Have a budget

It is not possible to handle your finances effectively without a feasible budget. Limit your spending options to only what is necessary.

While there are chances that there will be some interferences on your budget, your goal should be to reduce them to the barest.

Likewise, try involve your kids in the budget plan so that they can be more sensitive to money limitations.

Invest more

Resist the temptation to simply save. As a single parent, you need extra cash which will come through wise investments.

Look out for progressive and long term investment opportunities but at the same time avoid get rich quick schemes.

Handling your finances effectively requires that you know how to invest so when you plan your budget, ensure there is room for investments.

Create a "safety net"

On any given day, you could incur an unexpected expense such as a medical bill or home repair.

Your daily cash flow may not be enough to cover these bills, and you won’t want to tap into some of your long-term investments or retirement accounts. It is therefore critical to have an emergency fund set aside.

Keep track of all your accounts

As a single parent, you should constantly monitor your checking accounts, savings accounts and any credit account you have like a mortgage or car loan.

When you can see everything that you’re spending your money on, you will be more informed and empowered to make smarter purchasing decisions.

david nganga