Tips to Help Single Moms Save Money

Women are often not paid as well as men are. It is said that for every dollar that a man earns, a woman takes home about 78 cents. Added to this, household needs eat into a major portion of their salaries, thus making it very difficult to set aside savings. All this means that as a woman, you need to make smart choices to achieve true financial independence. And the most important aspect of improving your financial situation is to save more.

Money management

Calculate your total income and expenses so that you have a better understanding of your financial situation and know exactly how much you can save realistically. Once you have calculated the sum of your earnings, compare them with the expenses to see how much is left. If the remaining money doesn’t amount to much, you should consider making adjustments to your lifestyle and cutting down on things you can do without. It may seem hard at first but once you see the build-up of extra dollars every week, you will realize that it is worth the effort. Stay away from credit cards and resist the urge to spend extravagantly.

Set realistic financial goals

Getting organized and putting a proper financial plan in place is always a good idea. You should set achievable financial goals for yourself and create timelines to ensure that you stay on course. If you are saving to make a purchase, make sure that you have thought carefully about whether you need that product. You should also explore the possibility of placing a portion of your savings in low to moderate risk investments so that your money can grow faster.

Emergency fund

You need to be prepared to deal with any unexpected events or drastic changes to your health or finances. If you lose your job, you need at least six months’ income to keep you going until you find another one. In case of a medical emergency, you will find that there are certain bills that are not covered under your insurance policy. You will need to bear those expenses. In all these situations, your emergency fund will play a very important role.

Apart from these measures, you should also try to take a more decisive role in managing your family’s finances. If you are married and have kids, you should encourage your husband to control expenditure and also inculcate a saving habit in your kids.

Speak Your Mind