Becoming a single parent can place tremendous pressure on anyone. You need to figure out how you’re going to manage things for both you and your child – and fast.
After all, you can’t afford to panic. It’s not just you that’s going to suffer if you can’t get your life and your finances on track.
The good news is that as challenging as it might be to become a single mother, there are still plenty of women out there that thrive in the role.
These women learn how to make the most of their situation and ensure that they’re always giving the best care to their kids, no matter what might happen.
If you want to become a single mom superstar in 2020, the following tips will help.
#1 Understand your Situation
The first step in surviving your financial situation as a single mother is understanding what’s going on with your money.
You’re going to need to understand exactly how much cash you have coming into your home and going out each month. From there, you’ll be able to begin building a conservative budget that can support you and your youngster.
Don’t be surprised if you find out that you’re in a bad position when you first start looking at your budget. You can’t let that get to you.
Remind yourself that you’re going to be making progress in the right direction and start cutting small costs here and there. Little savings, like spending less on your car insurance or taxes, can make a huge difference.
#2 Make your Life Easier
Things are challenging for a single mom. Anyone who tells you that life is going to be plain sailing when you become a solo parent is probably lying to you.
However, that doesn’t mean that you have to spend all of your time struggling. For instance, if you desperately need a new car so you can drive to and from work to make a living for your family, then taking on short term credit can spread the cost of that vehicle out over a manageable period.
Look for ways to make your life easier, without burying your head in the sand. You can also get help with debts from various free groups across the US and find out about any assistance you can get from tax credits or deductibles too.
#3 Get the Right Bank Account
The right bank account can make a massive difference to your savings strategy. First of all, you’re going to want a separate savings account and current account.
Your current account is where your money from your job will go each month. On the other hand, your savings account is the high-interest environment where you’ll be sending anything that you can afford to save.
Keeping the two bank accounts separate will help to prevent you from dipping into your savings whenever you want something that you can’t afford. Additionally, you can set automatic payments up from your current to your savings account each month to automate your finances too.
#4 Stay On Top of your Bills
The key to maintaining a healthy budget is making sure that you pay for all of your expenses on time. You’re never going to find extra cash that you can put towards your long term goals if you’re constantly paying late fees and high-interest rates on the other expenses that you owe.
If your bank allows you to set up automated payments, do so with the costs that you need to handle on a regular basis. For instance, you might need to spend money on gas and electric bills once a month.
If you can’t automate your payments, then you’ll need to find another way to remind yourself to make those transactions on time. Perhaps setting an alarm on your phone would be helpful, or you could try writing things on a calendar.
#5 Pay Off Credit Cards Fast
Finally, as much as possible, it’s a good idea to avoid using credit cards. Credit cards generally come with a much higher interest rate than other loans and lending options.
If you can’t afford to pay for something with the cash that you already have, ask yourself whether you really need it. If you do, then consider all of your borrowing options before you immediately default to spending the money on your credit card.
This could help to reduce your risk of over-spending and getting yourself into regular amounts of debt.