Being a single parent can be hard to manage with many tough decisions to make. However, finances shouldn't be the hardest thing on your plate to handle. By understanding how to create and manage your budget, you'll relieve a huge burden and better your life and that of your children.
Single Mom's Guide To A Household Budget
Understand what a budget actually is. A budget is the plan for how your money will be spent each month. A household budget should help you to know what bills you have to pay, how much money is coming into our home and how much is leftover at the end of the month for savings.
A household budget is most often used as a guide for you to understand and see if you are making enough money to cover your expenses, and how that money will be spent throughout the month. Your budget can fluctuate month to month with varied expenses that crop up, but you must always make sure there is more money at the end of the month than expenses to avoid debt.
Knowing what expenses aren't necessary. One important thing about a household budget is that you will have to understand and learn what is a need and what is a want.
The reason this is important, is the fact that many single moms will find themselves with limited income. Limited income means you will often have more bills due at the end of the month than money coming in. Instead of incurring debt or losing your home and vehicle, you have to figure out things you can eliminate from your budget to create more income to pay toward bills. This isn't fun, but it is a necessary evil.
Below are some things that potentially could be considered a "want" and could be canceled or removed from your expenses.
- Dining out
- Satellite or Cable Television
- New wardrobe for yourself (use what you have already and supplement with items found at thrift stores)
- Vacations or weekend getaways (can be vital to your emotional well-being, but not if creating debt)
- A newer car (if yours is in good condition there is no need to upgrade for a higher price)
- Larger home (you may need to consider downsizing to a smaller and thus less expensive home or apartment)
- Pampering like manicures, pedicures, hair styling (these expenses add up fast and should be done yourself or sparingly when funds are available from birthdays or gifts)
Focus money into a savings plan. One of the most important things a single mom can do for her household budget is to funnel money into savings. Even if you are able to make ends meet and still keep up with some of the wants listed above, it is vital to save money for a rainy day (also known as an emergency fund).
As a single parent you know that sometimes a sick child can mean you lose several days pay at work. When something like that happens, bills get behind and problems happen. Focus at least $20 a month into savings, and work your way up to higher amounts.
If you can't afford $20 a month in savings but still have some of the above "wants" in your budget, it is time to cut them out until you have enough to pay at least one month's bills in your savings account.
What about you? If you're a single parent, how do you manage your budget?
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