When you first started your journey as a single mother, you may have been worried about how you were going to survive on one income. If you have not already created one, you should know that a household budget will help you get through any tough financial times and it could even help you save for your child’s future. With a well thought out plan and a little effort, you will soon be rich, both in love from your child and in money.
Planning your budget
Actually writing down where your money should go each month will help you see your monthly spending needs and habits. With a budget, you will be able to track your household cash flow as well. You probably already know your monthly income, but calculating your monthly expenses could be a bit more difficult.
First, you should gather all of your bills, credit card statements, checking account information, and receipts for everything you have bought with cash in the last month. If you haven’t been keeping these records, do so for the next month before you create a set budget. When you are able to see exactly where your money goes, it will be easier to figure out which costs are necessary and which are not.
Pay close attention to your most important purchases. You will obviously need to budget for rent, food, credit card payments, and other bills before you can buy the things you want. Some of the most successful budgeters use envelopes to manage their finances. They put money to pay for each of their bills in separate envelopes so that they are ready to be paid. With that money safely put away, they are able to see what they have left from their monthly income, and they are less likely to miss a payment.
Saving on a budget
Saving is a very important part of creating a budget. You obviously want to try to save as much money as possible for your future and for your children’s future, but most people only save what is left at the end of the month, meaning that they could be saving nothing at all. Set aside a specific amount each month that you want to save, and then create your budget around what you have left. With this strategy, you may have to cut back on some things that aren’t necessary for your family to survive, which could mean you have to do away with a few luxuries (i.e. going to the movies, having the largest cable package, etc.).
However, you will be much happier in the end because you will know that your finances are stable thanks to your savings.
Ways to save money
For some single moms, a budget may not be enough. No matter what, you should always try to find ways to save, even on the smallest purchases. Spending less than your monthly budget will mean more money in your savings account. Try a few of these tips to get started.
- Look through ads before you shop – You could save hundreds each year if you look for the least expensive option. This can work for food, cloths, and vehicle maintenance, as well as many other important and necessary purchases.
- Coupons – Very few families take advantage of the coupons they get every week with their newspaper. Even the smallest amount of savings could add up by the end of the month. One thing you should not do, however, is fall into the coupon trap. Coupons are meant to get you to try new products. You should be willing to do this, but don’t buy a product with a coupon if you know your family won’t use it.
- Price matching – Some stores will match the price of their competitors. Research online before you shop to know who will price match and gather ads from their competitors that are advertising cheaper prices.
Amy Shoemaker is an author of many articles relating to topics including finances, volunteering, and nursing homes. Her website is for elderly citizens who have suffered nursing home abuse.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
