As a single mom, you probably think there has got to be a better way to manage your monthly finances. Unfortunately, events come up in life, making those expenses you’ve kept up with fall behind. To keep the balance of family life and monetary needs up to standards, here are a few tips for single mothers to help you manage your finances better.
- Make a Plan to Eliminate Your Debts
Your first step should be to calculate all your outstanding debts. It’s important to start eliminating these debts because you don’t want them tonegatively impact your credit score or enable you to be a victim to wage garnishment.
Now that you know your debts, it’s time to make a plan to eliminate them. You can make monthly payments on each or consolidate your debts to make one affordable monthly payment. Now if you can’t find a way to consolidate them all, take out a loan against your home or a personal loan. Check out some rates on www.ukhomeandpersonalloans.co.uk/ to see if you can get a lower payment and interest rate that allows you to stay on track.
- Create a Budget and Stick to It
Next, it’s time to deal with your monthly expenses. You need to create a budget and stick to it. You can create and track your budget on free financial software programs. These are easy to find online. Some have helpful charts, graphs, and articles to help you manage your monthly finances. After a full month, you should be able to see where you are overspending or wasting money. This now helps you save money and put it towards better use.
- Divide Your Bills Up By Paycheck
After you have your budget, you can now devote your efforts to paying your bills on time. To do so, you need to know how to divide your bills up. First and foremost, you must pay rent each month on time, like clockwork. So if you are paid twice a month, ensure half of your paycheck goes into an account dedicated to your rent. Your budget spreadsheet can break down when your utilities are due and which check it should come from. Do this for all your bills.
- Put Tax Returns Aside for Emergencies
A great way to save money is to start with your income tax return. Most single mothers will qualify for an income-based tax credit for each eligible child. Instead of spending it all, be sure to tuck some away in an emergency fund account. This puts money aside for your unexpected expenses because, to be honest, child support, if even received, doesn’t always cut it.
You don’t need someone breathing down your neck about keeping up with your budget. Be your own financial advisor. Sit down every week or two and ensure you are staying on track. Balance your checkbook for your checking and savings. Also, take this time to update your list of must have items. These tactics can help you manage your monthly finances better.