Being a single mum might be a challenge, but that doesn’t mean that you’re destined to struggle with finances until your kids are out of the house and earning for themselves.
Quite the opposite, you’d be surprised at what you can achieve with a bit of financial planning and some smart career, lifestyle, and money choices.
And now that 2020 is well under way, the time is as good as any to take control of your budget and finally build the financial stability that you and your family deserve.
From cooking cheap yet nutritious meals, to reducing your energy costs, all the way to making smarter buying decisions, there’s a lot you can do to elevate your financial standing. But hey, you can do even better than that, so let’s think beyond 2020, and help you overcome financial challenges for good.
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It all starts with a financial plan
Affluence is the product of vision, determination, and strategic thinking. If you want to overcome financial difficulties, you need to have a clear vision of what you want to achieve, and you have to make a concrete battle plan. So naturally, making a financial strategy should be your no.1 priority.
Think of this strategy as a business plan, and focus on setting long-term goals, and then work your way back towards the tactics you’re going to use and objectives you need to complete to realise them.
Be as strict as you can, and set concrete deadlines for yourself. There’s no greater incentive than a time crunch, but be sure to set reasonable deadlines that you can actually achieve. Once you have your goals and your deadlines, you can start eliminating all of your extraneous expenses that are holding you back. Next, try to find more affordable deals for your recurring payments and subscriptions, and consider switching providers if need be. And finally, be realistic. If you need to earn more money to achieve your goals, then that’s what you’re going to do.
Start eliminating debt and improve your credit score
Before we get into income diversification and career options for a busy single mum, let’s first address the problems of debt management, credit scores, and income supplementation. Now, all of this might sound like business talk, but in reality, it’s important that you stay positive throughout and that you’re always aware of one powerful fact – everything is going to be just fine; you’ve got what it takes to create financial stability. With those words of encouragement, let’s dig in.
It’s important that you eliminate your debt and improve your credit score so that you have the option of applying for a loan, should you require a quick influx of cash before you’ve monetised the business ideas we’re going to mention in a minute. You can do this by noting down all of your debt, and focusing on the smaller outstanding payments first. Be sure to research credit card providers to find more favourable terms, and above all, stick to your monthly payments no matter what. This will also improve your credit score, which is essential for the next step.
Get additional funding when you need it
Don’t be afraid of banks and lenders. If you need access to some additional cash quickly, if you have a sudden expense that you did not prepare for, or if you need to supplement your cash flow until you start earning more money, then taking out a favourable personal loan would be a wise and prudent idea. But that doesn’t mean that you should choose the first deal that you come across, instead, you need to research your loan options, and shop around.
Be sure to research banks and lenders online, and compare different options before you make any decisions. You’re bound to find a lender that is flexible, understanding, and open to negotiations so that you can get the best possible loan terms that will allow you to bridge your financial gap, and pay off your loan as quickly as possible.
Establish true financial independence
With all of that covered, it’s time to start thinking of your long-term income sources. As a single mum, you’ve got a lot on your plate, so working two jobs away from home is obviously out of the question. But interestingly, some of the wealthiest women in the world built their fortune working from home – and if they could do it, so can you.
The key is to research the type of at-home, online work that sparks your interest and creativity, and then diversify your income streams. For example, you can start a blog, and then find different ways to monetize it. It’s important that you build revenue streams from advertising space, your own products, affiliate marketing, sponsorships, and more. Over time, you will be able to quit your steady job and devote all of your time to your at-home job and your family.
Be a role model for your kids
Children can be a drain on your financial resources, so if you want to establish long-term financial stability, you need to instill positive money habits and a healthy mindset. Kids don’t really understand how money works, so it’s up to you to teach them how money should be managed and spent, and why it’s not a good idea to always crave new stuff, and things that they don’t need. With a little guidance and a lot of consistency, your kids will become more mindful of your financial capabilities, and they will learn to enjoy the things they already have.
You might get genuinely scared when you take a look at all of your monthly expenses, but that doesn’t mean that there aren’t ways you can make a positive change. Use these tips to build financial security in 2020 and beyond, and build a life you and your children deserve.
Do you have any money-related new year resolutions? Tell us in the comments below.