Single parents make tough decisions every day because of the responsibility on their shoulders. If you are raising a child by yourself, its important to create a budget that works for you. This helps you pay off debt, manage expenses, and save for your childs future. There are several things to keep in mind when creating your own budget.
Dont Forget Goals Further in the Future
While paying rent, making minimum payments on debt, and creating an emergency fund may seem like your most pressing goals, dont forget to think about the future as well. You could save for short-term goals like gifts or vacations. You can also save for longer-term goals, such as your retirement and the kids college. There are many ways you can save for your childrens college education, but if you are living on a single income, it might not be feasible to pay the entire cost of tuition and fees on your own. That’s why its a good idea to look into other options, such as student loans. Your child can apply for student loans with a cosigner, which can help them get approved. An Earnest student loan cosigner can even lead to lower rates.
Think About Child Support
It’s important to think about any child support you might be receiving. This can be counted in the income streams when you are coming up with the budget. Still, its best to only add in child support if it is a steady source of income, coming in each month and for a predictable amount. But if you are not receiving it on a regular basis or the amount varies too much, you may not want to factor it into your budget. Instead, you can put it in a separate account dedicated to your children. This can be used for whatever your highest financial goal for them is at the time.
Keep Other Expenses Low
When living on only one income, keeping expenses low can help you stretch your money as far as possible. If you find it hard to pay your bills on time, you may want to look for ways of cutting down your expenses. If you switch your phone or internet to another company, you might save money. Choosing to ask friend or family to help with childcare instead of hiring a permanent nanny is another great suggestion. Consider paying for only one subscription service and cutting out cable.
There are many ways of saving on expenses, including making more food and drinks at home instead of buying them out. There are plenty of free things to do with kids, so you dont have to go on expensive vacations. If you have joint custody or your kids spend a certain amount of time with their other parent, you might not be spending as much because the kids will not be with you. When you have lower expenses like this, you can put the extra money toward other goals.
Let Guilt Go
Let go of guilt whenever you feel it. Don’t feel like you are not good enough or doing enough for the kids. While it is normal to want to do your best for your children, guilt should not be the primary feeling when you think of your kids. If you are always overwhelmed by guilty feelings, you could cope negatively, including overspending on them. To avoid feelings of guilt, try to avoid comparing yourself to other families. Just because another person looks like they have a great family situation doesnt mean they do because you never know what is happening with them. If you are offered help, dont be afraid to accept it. Others want to help you, and if you don’t let them, you won’t be able to do it all. Relying on yourself can feel good, but it can also put you under too much pressure. It’s also important to take care of yourself. Make sure you take time to do something you enjoy, and dont be afraid to say no.
