Smart Budgeting Tips for Single Working Parents
As a single mom or single dad, things can get pretty tough in the house. It’s not easy to raise a kid or kids on your own, let alone support them financially with just one source of income – yours. We figured the best New Year’s gift for single parents like you would be a list of sensible tips on budgeting for a financially hopeful year ahead. Note that we assume you have income of your own.
Budget like You Don’t Get Support
For single parents whose spouses are dead or incapable of providing support, you may not have a choice, but those who are separated or divorced from their spouses, they budgeting as if they don’t get support from the other parent may be challenging.
The reason for this is simple: whatever you get from your ex-spouse can used for savings or investments. And in case your ex-spouse stops or limits their support, you don’t need to worry about how to support yourself and your child.
Budget for the Immediate Essentials
Right now, your main concern is making ends meet. Perhaps you don’t have a chance at saving money yet, but by budgeting and spending frugally what money you do have, you’re on your way to saving some and investing some. But as of present, you can’t think about luxuries and non-essentials yet.
Budget for Parent-Child Bonding
You can get awfully busy as a single parent. So you may not have lots of time with your child. Budget for campings, dinner dates or movie marathons. You can also budget for a yearly trip to visit the grandparents. Make memories with your child as much as possible. Both of you have gone through a lot, and spending time together makes things a lot easier to handle.
Budget for Your Future Retirement
Most single parents are very young, so it may sound too early for them to build up funds for retirement. Actually, the best time to work out your 401k as early as possible in order to secure your future once your child grows up and have a life of their own.
Also, you may not have plans of getting married (again), so it’s best to secure your future on your own. That is the ultimate financial independence right there. Whenever you have extra, save it for your retirement.