BEING A single parent is a task that frequently requires extra measures of faith, valour, and fortitude.
The difficulty in being a single parent lies in your having to be exclusively responsible for your children's needs, along with your own.
Learning ways to manage your money will help relieve some of your financial concerns, and will give you a greater sense of control over your family.
EVALUATE YOUR CURRENT FINANCIAL STATE OF AFFAIRS
Find out exactly where you are before you begin to work on plans to get you where you want to go. Itemise all that you own, and then make a separate list of your liabilities what you owe.
Now compare the total value of what you own, with the total amount you owe your current net worth.
If your net worth happens to be low, or even if you find out that you owe more than you own, do not be dismayed. It's really important to have this knowledge to guide your financial decisions.
With this knowledge, the better your chances of improving your net worth in the future.
TAKE CONTROL
OF YOUR FINANCES
The next step is to make a list of your usual expenses. If you have just become a single parent, a lot of these figures will change, but will assist you in planning future spending if you have a good idea of how much you have been spending.
A spending plan, or budget, is essential and should be a flexible tool to help you manage your money. Don't look at your budget as a rigid plan that will not work when changes or emergencies crop up.
The key is to always exaggerate your expenses and underestimate your income, so you minimise cash shortages. Ensure that you set aside as much money as possible for periods of low or no income, or in case of emergencies.
LIFE INSURANCE
This is an important thing to have in place, especially as a single parent. It is never a comforting feeling to know you are putting plans in place for your death. But the one reassuring thought that comes out of it is that you will be preparing a path for your children's well-being.
SAVING FOR YOUR CHILD'S EDUCATION
Saving for your children's education late is a mistake that most parents make.
It is important that you start saving as early as possible because as a single parent, paying for a child's education can be very challenging.
So when you start saving for a child's education, ensure that you take advantage of investment strategies that help grow your assets but do not let it interfere with short and mid-term investments.
TEACHING CHILDREN ABOUT SAVING
Teaching your children from an early age how to save will help them to be financially responsible and independent. Involve them in family spending decisions, and make sure they understand the concept of managing money.
The financial difficulty of single parenting can be alleviated through establishing a sound financial plan.
Be proactive and resist waiting on challenges to arise before action is taken. Seek the advice of a licensed investment adviser to help you to be financially focused on achieving your goals.
* To further discuss investing and the many options we have available, contact DB&G at info@mydbg.com or toll free at 1-888-CALL DBG.
Disclaimer: All information contained in this article has been obtained from sources that DB&G believes to be accurate and reliable. All opinions and estimates constitute the author's judgment as of the date of the article. No warranty as to the accuracy, timeliness or completeness of this article and as to the opinions based thereon is given or made by DB&G. DB&G and/or its employees or directors and/or any associated person may have an interest in, or interest in the acquisition or disposal of, the securities or class of securities mentioned herein. Call 1-888- CALL DBG if in doubt about the content of this article. Decisions based on information contained in this article are your sole responsibility.
