Elizabeth Warren once quoted – “Balancing your money is the key to having enough.” As a parent, one ends up taking care of monthly and yearly bills and is always caught up in the mesh of meeting the needs of kids and other members of the family. As a single parent, single mums end up exhibiting greater responsibilities. From meeting the basic needs of a child to household chores and managing time as a working woman. So that she doesn’t single out any of her duties, scheduling her financial planning activities takes a backstage.
How to plan your finances?
Financial planning helps manage expenses with ease. The role of a mother is already nerve-wracking in nature. Women as a single parent have to deal with many adversities that life. Hence, financial planning is not given the top priority. Below are a few tips to manage one’s finance for trying times:
- Investing in Real Estate
Real Estate investments play a significant role in getting higher returns in the long run. A mother’s major concern is how to fund the child’s education, manage utilities, pay bills, manage loans, etc. Investing in a property (after a thorough research) can help relieve a single mum from various monetary pitfalls.
- Budgeting the Monthly Expenses
Creating a monthly budget (during the beginning of a month) can be an eye-opener. This practice enables us to keep a check on overall expenses which are mandatory, and cut-out on other expenses which may not be necessary. One can reduce their spending on expensive babycloths and thus curb erroneous spending.
- Investing in SIPs
Systematic Investment Plans (or SIPs) enable the investor to invest in secured equity funds in small amounts and also gain returns as dividends. One can also take advice from a certified financial planner and buy any reputed child plan that has guaranteed educational benefits. Traditional life insurance plans can also yield good benefits when invested for a long-term.
- Watch your Loans
Getting out of a loan mesh can turn out to be really tricky. One should refrain from any high-interest personal loans that are capable of crushing the entire budget plan of a household. As there goes a famous proverb “To loan is to buy troubles” remains true to this day.
- Plan your Retirement in advance
Retirement planning is imperative when it comes to planning one’s finances. Redirecting funds in small amounts to an account that can be accessed only at a certain point in time is a wise step towards retirement planning. A good retirement plan can fetch you a 10-15% return upon the completion of a 15-year term.
- Planning for the Health Expenses in Advance
“Health is wealth”. This proverb holds true since time immemorial. Paying attention to all health concerns and planning for finances for regular health check-ups of the single mum and the kids, need not be overlooked.
A financial planner can help identify the crevices in the planning ideologies of a single mum and also provide corrective measures. So planning the finances in the right manner must be prioritized without further ado by a single parent.