As a single mom, your responsibilities to your home and your family are panoramic. As the sole earner, and by definition the sole adult at home, it is on your shoulders to establish effective financial practices for you and your family. That means assessing both income and outgoings, in order to make the household budget balance. But it also means thinking about the future, and laying the right foundations now for a more prosperous tomorrow. You don’t need to be highly financially savvy to run a tight ship – through making simple changes to the way you structure your finances, it can be possible to achieve the desired effect.

Single moms often find themselves being in the position of receiving a single monthly income. In a one-parent family, there can only be one breadwinner, and that often means juggling the responsibility of childcare and work commitments. With only one income, expenditure needs to be much more tightly managed. In these cases, there is no financial safety net, and no support from a partner to afford emergency expenditure or plan for the future. This means moms need to seize the initiative, taking control of their finances now to make it easier to benefit from the advantages in future.
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When you are starting to plan your finances, you need to develop a solid picture of your expenditure month to month. There are certain bills that crop up each month that always have to be accounted for – structural expenditure, like your rent, broadband, utilities and so on. Then there are other items of expenditure that are variable, yet still essential, like transport costs in getting to work, or childcare costs around your working pattern. These are things you can’t necessarily cut out from your financial picture, and these are the first items of expenditure your income will notionally cover each month.

Next, you need to look at non-essential expenditure in your monthly budget, and whether you can find savings from these outgoings. This is all the expense you could comfortably do without. Naturally, definitions on this point vary significantly – some people live more modestly than others, and so define “non-essential” in very different ways. Look at your optional expenditure and decide where you can cut back. If you approach your finances through the lens of reducing what you are spending, chances are you will find one or more areas of saving. Remember these can add up into serious amounts of money with time, so it pays to look for reductions wherever possible.

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Simple things, like more efficient shopping, or switching energy suppliers, can save you significant amounts of money. Saving does not have to mean a deteriorating standard of living. There are plenty of ways of spending more efficiently to receive an equivalent standard of lifestyle, and those who adhere to these ideas will benefit from the savings they can bring. When you are running your household budget, you need to consistently think about ways of squeezing expenditure, both necessary and unnecessary – this is your kids’ college fund at stake, and the minor adjustments you make now will come back to thank you in the years and decades to come.

Finding ways to save money on a monthly basis is one thing, but you need to invest that money if you want to feel the fullest potential benefits. Investing is all well and good, but you do need to look for security. Nothing would be worse than losing that money you have saved and consistently set aside. Certificates of deposit are a good option for this type of saving, providing you with a certain return on the money you invest, based on certificate of deposit rates. The money you make from your investments can be reinvested until you need to use it, allowing you to compound your gains for the best result. This can be a key stepping stone to financial freedom, both for now and in the future.

Being a single mom can be tough. Not only do you bear the full extent of childcare duties, but also a 100% share of household admin and organization. Financial planning and management are important parts of that, and getting the right framework in place now can help ensure you and your family have a financially stronger future. From cutting down on excessive expenditure now, while finding better ways to invest your money, a simple refinement of your financial circumstances can be worth it, both for now and for the long-term.