Financial solvency can be a tall order in the current economic landscape, especially if you’re a single mother. But the road ahead can be cleared of hurdles by adhering to a regiment of money-saving strategies. Here are some tips for getting your finances back in order:
Pay as much as you can into a 401(k) plan
Due to the wretched economic conditions spurred on by the recession there are much fewer companies out there offering their employees competitive retirement plans. If you are employed by one of these companies it is definitely worth the extra money to pay into a 401k plan. This money will be matched by your employer and can grow in a sizable savings account in fewer years than it can take to raise a child. However, if your employer doesn’t offer a retirement plan, it may still be worth your while to purchase an IRA or Roth IRA plan. Contact your financial advisor or your local Aurora Bank and inquire about their retirement plans.
Write off business expenses
Especially if you work for yourself, writing off business expenses is a must. If you use your computer for work-related tasks, this can be a considerable drain on its memory. Additionally, if you use your home as an office, you can write off a variety of utility bills and home appliance costs. One would like to think this is part of an effort by the federal government to incentivize the growth of small businesses.
Reduce your utility bills by installing energy efficient appliances
Speaking of utility bills, did you know that you can save hundreds of dollars a year simply by making minor upgrades to your home? Installing low-flow water faucets, making sure air ducts and ventilation systems are working properly, monitoring your heater, etc. Even if you can’t afford solar panels, simply improving the efficiency of your existing appliances will reduce energy costs dramatically.
Pay off or consolidate your debt
It’s one thing to keep your credit card open in order to improve your credit score. That’s a good thing actually. But if you have a high balance on your credit card, you’re accruing tremendous interest fees that will compound over the years. If you can’t pay off the balance and you have multiple debts, it may be worth looking into a consolidated debt loan that will bundle your debts together with a lower interest rate attached. If your credit has been in good standing for several consecutive years, you may apply for an extremely low interest consolidated loan.
These tips will save you money both in the short run and long run. Lower energy costs, a healthy retirement plan, lower taxes and debt reduction will improve your financial standing and allow you to save for the future.
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.
