Single moms and dads are masters of juggling: Balancing work, kids and never-ending chores is a feat in and of itself. But making a long-term plan to survive financially as a single parent? That’s more akin to a tightrope walk: One false move, and you could find yourself off-balance.
This daring deed challenges you to balance your budget while saving for the future. But throw in the extra stress from credit card bills, personal loans or medical bills, and the prospect of doing anything more than surviving financially can feel daunting.
This guide is here to help you manage the three-ring circus of money, debt and single parenting. After all, building towards a strong financial shield for your family could be your finest act yet!
Your Family’s Unique Money Landscape
Being a single parent means your financial world has its own set of rules. And understanding its big picture can help you plan better:
- Your Income “Jigsaw Puzzle”: Your money might come from different places: Your main job, child support or government benefits. Without a budget, it can be hard to see the full picture of how much money you truly have each month.
- The Endless Joy and Surprises of Childrearing: Kids are fun and, sometimes, wildly expensive. School trips, new shoes or a sudden doctor visit can pop up. Without careful planning, these surprises can quickly turn into debt (plus interest, of course).
- Time is Short: How much free time do you enjoy each week? If you said, “What’s freetime?” you know how short each of the 24 hours in a day can feel. Single parenting makes it harder to start a side hustle or snoop out the best deals on groceries and other essentials.
- The “What If” Worry: What if you get sick? What if your car breaks down? Without a second income to lean on, these “what if” moments can feel very scary and often lead to using credit cards out of need.
How to Build a Bullet-Proof Money Plan
Setting yourself up for success and safety in the long-term is the product of little choices that add up in a big way.
Step 1: Account for Everything
Ensure your “everyday” money works hard for you.
- The “Income First” Rule: When you get paid, first, make sure money goes to your most important bills (rent, food, utilities). Then, set aside money for your unsecured debts.
- Track Your Family’s Spending: For a few weeks, write down every single thing your family spends money on. You might be surprised where your money goes! This helps you spot places to save.
- Smart Shopping: Learn ways to save money on groceries, clothes and other daily essentials. Using coupons, buying things on sale or meal planning can free up money for bills.
Step 2: Create Buffers
These layers help you catch money problems before they turn into big debt.
- Your Emergency Fund: This is money saved just for unexpected problems, like a sudden bill. Having this money set aside means you don’t have to use credit cards when surprises happen. Your first goal is getting your emergency fund to $1,000. Once you’ve achieved that, work towards building your savings up enough to cover 3-6 months of bills.
- Find a Side Gig: Can you do a little extra work that fits your busy schedule? Consider accessible online gigs, tutoring or selling things you don’t need. Even a small side job can bring in extra money to help pay off bills.
- Maximizing Benefits: Make sure you are getting all the government help you can. Programs like SNAP or Medicaid can be huge offsets to your grocery bill or medical costs.
Step 3: Tack Debt Head-On
If you have unsecured debt, like a credit card or personal loan, paying it off now could save you a ton in the long run.
- Your Debt Attack Plan: Look at your credit cards, personal loan and/or medical bills. Pick the one with the highest interest payment first to save more, or choose a more achievable bill to give yourself some momentum.
- Debt Consolidation Programs: If you have more than a few credit card bills, a debt consolidation program can be a big help. This is where you combine many bills into one, cheaper monthly payment, and get on a scheduled plan to become debt-free in as little as 24-48 months. Getting started can give you immediate financial relief, help you reduce financial stress and set you on the road to financial freedom.
Building a Brighter Future for Your Family
You are building a future for your children. Here’s how to make your money work even harder:
- Keep Learning About Money: The more you learn, the more powerful you become. Read simple guides, listen to podcasts or watch videos about money.
- Find Community Support: Look for groups in your town that can help with food, electricity bills or housing. When you get help with these basic needs, it frees up your own money to go towards your unsecured debt.
- Take Care of Yourself: Money worries can be very stressful. Remember to take time for yourself and your mental health. Being strong inside helps you be strong with your money.