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SMART FINANCIAL STRATEGIES FOR SINGLE PARENTS

So, you are a newly single parent with questions floating in and out of your mind about how to bring order to your financial life in light of your current challenges. Being a single parent comes with enormous financial responsibilities, especially when you have no external support system. That’s why it’s important to make the right money moves immediately, whether you’re currently going through a divorce proceeding or lost your partner recently. Here are some things you can do to stabilize your finances as a new single-parent.

Speak With a Financial Expert

It’s always important to speak with a financial expert if you’re unsure of what to do. That is especially important if you’re currently going through a separation or divorce proceedings. A financial expert or advisor can help you get a good idea of your current assets and guide you through growing them. You can also seek expert assistance to navigate the complications of financial settlement in a divorce. For example, an expert can help you with the financial investigation data gathering for divorce, so you can present an accurate financial case in court and get your financial claim granted during a divorce settlement. Getting what’s due you financially during a divorce or following a separation can help you start your new life on a good financial footing.

Save at Least 30% of Your Monthly Income

If you have a job, endeavour to save at least 30% of your monthly income into a fund. That may require making significant adjustments to your monthly budget and spending habits. Start by cutting down on unnecessary spending and do your best not to waste money. Your 30% monthly savings should be a long-term commitment. However, you can create an emergency fund, which will comprise about three to six months’ worth of your monthly expenses saved up. The difference between your emergency fund and monthly savings is that the former should be easily accessible whenever you need it, while the latter can be used to build more wealth. And this leads to the next point.

Increase Your Wealth Through Multiple Income Streams

Find reliable ways to grow your long-term monthly savings while your emergency fund offers you a temporary financial cushion. The options here are numerous, ranging from starting a business to looking for profitable investment opportunities. If you have no money saved up to invest, you can consider getting a side hustle to create multiple income streams. Or find other means to earn like renting out a space in your home, downsizing to a smaller property, etc.

Eliminate Debt

Debt is a major stumbling block to financial stability, especially for a single parent. The earlier you manage to eliminate it, the quicker you can set your financial life in order. Start by crunching the numbers to find out how much money you owe. Next, contact your lenders to set up a payment plan with them, one that takes your current earnings into consideration. You can also consider using a debt consolidation plan to combine all your existing loans into a single payment plan.

Smart Financial Strategies for Single Parents