Managing finances can be difficult at the best of times, but it’s even harder when you’re a single parent with only one income. Not only that but all the pressure and responsibility falls on you.
MoneyPlus recently conducted a survey of 1000 mums and dads, allowing them to share their stories and see that they are not alone in managing their finances. The survey found that nearly a third of parents surveyed said they spend more on food than on bills, which really goes to show how much the cost of food has increased. The survey also found that 65% felt their financial situation had negatively impacted their mental health.
But despite how difficult managing money can be as a single parent, there are things that you can do to make your finances flow a little better. Let’s take a look…
Create a budget spreadsheet
First of all, you will need to create a spreadsheet which details all of your outgoings each month. This will be a updated each money and monitored regularly so you know where you’re at with your finances. This can be daunting at first because the chances are you had no idea just how much money was going out each month. You should also work out how much money comes in each month and take away your outgoings to see how much spare money you’re left with.
After writing all of this down, you may realise there are some outgoings that you can cancel, or at least get a better deal on.
Track your spending
Now you have your spreadsheet which details all of your bills and other outgoings. But you will likely be guessing at how much you’re spending on food, clothing, entertainment etc. So what I like to do is to go through my bank statement each month and work out exactly how much I am spending on these things. I will warn you, you will probably be horrified at the figure you come to! But this is a wake up call for most people and will make you far more conscious of your spending going forwards.
Work on your debt
If you have any debt, it’s important to get rid of this as soon as you can. You will be paying out a lot of money in interest each month, so the sooner you can settle it, the better. You could look at increasing your monthly repayments if this is an option. Or contact a debt advice charity who can talk you through your options. Debt consolidation may also be an option, but it’s best to seek advice as everyones circumstances are different.
Open a savings account
Get yourself a high interest savings account and build up a pot of money to fall back on. Even if you can only afford to put £20 a month into it, every little helps. Paying off debts is important, but so is having some money to use in case of emergency. This can also be used for things such as birthday presents or Christmas, which can be a really difficult time for many financially.
I hope that this article has been helpful and that you feel a little more confident about managing your finances now. Please feel free to leave any questions below.
Thank you for reading.
