As a single mum, managing finances can be a challenge – especially if you’ve recently transitioned from a two-income household to relying on just one. Adjustments are often necessary, but with the right habits in place, you can take control of your financial situation and set yourself up for a more secure future.
Here are six financial habits to establish now for the year ahead:
1. Create a Budget
The first step in taking control of your finances is understanding exactly where you stand. Creating a budget allows you to compare your income to your expenses, giving you a clear picture of your financial health.
Start by tracking all your income sources and expenses, no matter how small. This will help you identify areas where you can cut back, prioritise needs over wants, and allocate funds for savings or emergencies. A budget isn’t just about restriction – it’s about empowerment and making intentional choices with your money.
2. Plan Without Relying on Child Support
If possible, design your budget so it doesn’t depend on child support. While child support can be a helpful resource, circumstances can change – payments might be delayed or adjusted, leaving you in a tough spot if you rely on them too heavily.
By treating child support as a bonus rather than a necessity, you’re building a financial buffer that ensures stability regardless of external factors. This habit fosters financial independence and resilience.
3. Build an Emergency Fund
An emergency fund is one of the most important tools for financial security. Aim to save at least three to six months’ worth of essential expenses in a separate account that’s not easily accessible for day-to-day spending.
Start small if necessary – even setting aside $10 or $20 a week can add up over time. Having a safety net will give you peace of mind and help you handle unexpected expenses without resorting to debt.
4. Prioritise Debt Repayment
If you have any outstanding debt, make a plan to tackle it. Begin by listing all your debts, including credit cards, loans, and other obligations. Focus on paying off high-interest debt first while continuing to make minimum payments on others.
Consider using the snowball method (paying off the smallest debt first for quick wins) or the avalanche method (paying off the highest-interest debt first to save money over time). Reducing debt not only frees up income but also reduces stress and improves your financial flexibility.
5. Set Financial Goals
Having clear financial goals gives you something to work toward and helps guide your spending decisions. Your goals might include saving for a family holiday, building a college fund for your kids, or buying a home in the future.
Break your goals into smaller, manageable steps, and set specific deadlines. For example, if you want to save $5,000 in a year, aim to put away around $417 per month. Celebrating milestones along the way can keep you motivated.
6. Educate Yourself About Money
Financial literacy is a powerful tool. Take the time to learn about managing money, investing, and planning for the future. There are countless free resources available, including online courses, podcasts, and books.
Understanding topics like compound interest, retirement planning, and smart spending habits can make a huge difference in your long-term financial well-being. Don’t hesitate to seek professional advice if needed—financial advisors or coaches can help you create a personalized plan.
Final Thoughts
Being a single mum comes with its financial challenges, but by establishing these habits, you can create a strong foundation for yourself and your family. Taking control of your finances not only reduces stress but also empowers you to build the life you want for yourself and your children.
Remember: every step, no matter how small, gets you closer to financial freedom and peace of mind. You’ve got this! 💪
P.S. DID YOU KNOW?
Thrive Tribe – the global membership experience for single mothers – will be opening again very soon! Join the waitlist here.
PLUS You can book one-on-one coaching with Julia Hasche from wherever you are in the world!
- Do you need clarity on whether you should leave your partner or not?
- Have you just parted ways with your partner, and feeling lost?
- Have you been single for a little while now and need assistance with getting your life back on track and feeling empowered?
Click HERE to read about coaching and to hear from some others who have gone through coaching programs with Julia, and book in here for your 30-minute complimentary Clarity Call.
The purpose of the Clarity Call is:
- For me to get to know you and understand an overview of your current situation and where you are at.
- For us to establish what you need assistance with to move forward.
- To see if we are both comfortable working together.
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