Saving Plans For Single Moms
Starting saving plans for single moms takes perseverance. It is possible to create a budget and a savings plan to get single mom finance on track.
While many single moms find comfort and freedom in single motherhood, we can’t ignore that total independence does come with its challenges. One of the biggest obstacles to navigate as a single mom can be limited finances. It is clear that a divorce or a separation can put your finances on a tailspin and the bills keep you on your toes month after month.
Everyone wants financial freedom, and as a single mother, you too, are entitled to be in a free and secure state of mind for the sake of your kids. But to achieve this worthy goal, you need to develop a good savings plan for single moms.
A proper saving plans for single moms depends on many factors. Among those factors are:
- Level of the income
- Level of disposable income
- Current financial status
- Debt load
- Short goals
- Long term goals
Saving plans are a tool that can help you save money
It enables you to manage what you have so that no excess amount of money gets wasted and discover new ways to make a little or a lot extra.
Tips for saving plans for single moms
Evaluate your current Financial Status
The first step in single mom savings planning is to assess your current financial situation. Create three separate categories: Needs, Wants, and Desires. This will give you a clearer idea of which things take priority over others.
Housing expenses such as rent, utilities
Wants, such as changing the wallpaper the kitchen, getting the kids that Xbox or those Godiva chocolates can wait while you build up some savings.
Desires would include the new luxury cruise you’ve been dying to take, the brand new sports car you’ve had your eye on or even the ultra-cool game-room for the kids.
This categorized list will help you to create a plan of where you want to go financially.
Have a budget to avoid overspending.
Tracking your monthly spending is the next crucial step towards creating a savings plan. Especially if you never seem to have enough money left over to save, understanding how you spend your money can help you make better decisions. Make a budget for tracking your expenses. A budget can make you feel restricted, but it gives you more in control, and it’s easier to stop overspending
To make a budget, take into account everything you need first. List all your outgoings, including rent, food, utilities, clothing, car, entertainment and then allocate the amount of money each item will consume. Once you have your list together you need to add up the totals. So you can have a glance at the total amount you are spending on each item and your total monthly outgoings. If your entire monthly outgoings are more than your current earnings, you need to get busy cutting down your spending.
Set Short term and long term Saving Goals
Having a goal to strive towards can really improve your money-saving efforts. Whether short term or long term goals will help you stay focused on your savings. To come with smart saving goals, make a list of the most important things you need or would like to have. Be it college tuition for your kids, a big house, retirement or a vacation. The goals should be realistic, that is something that you can actually accomplish.
Once you have decided on your saving goals, now you need to work towards achieving them. you need to ask yourself what steps you will take to achieve those goals. That means you need a savings plan that will help you build your big house or save for that luxurious vacation.
A plan is necessary to give you financial success. It provides you with a step-by-step guide detailing exactly what needs to be done.
Prepare for emergencies.
Everyone should have an emergency fund because it’s one of the best ways to prepare for any future financial crisis. It is hard to predict when an emergency will happen that requires a large chunk of cash. Having an emergency fund can help you manage tough situations like loss of a job or an unexpected expense.
Try to set aside anywhere from three to six months’ salary as an emergency fund. You may think that is a lot of money but will be grateful when you face a situation where you may need to use it. Always keep this amount in an account separate from your savings account. However, ensure that you can access it easily in times of an emergency without having to pay fines. The emergency funds should be used only in emergencies.
Save on Bank Fees
Another way to quickly and simply increase savings without impacting on their lifestyle is by reducing bank fees. Banks are known for charging their clients for every service offered. There is a fee for checks, for withdrawing over the counter to account balances below a certain amount.
Avoid those bank charges and fees by joining a credit union. There may be one available through your state or your employer. Join as soon as possible and you could, over time, accumulate a tidy sum to put into your savings.
Not only do credit unions have fewer rules and fees, but they also offer you a better, less complicated experience overall. Not to mention, they give you cheaper loans, and your deposits will earn interest over time more interest on deposits. You will rest easy that the money you deposit will start making money for you instead of disappearing because of the fees.
Automate your savings
Sticking with a savings plan is much easier when your savings are diverted from your income as soon as you earn it. That keeps you from spending those funds and ensures that they are put away. You can transfer a certain amount or a percentage so that it goes straight to your savings account.
Many employers also allow you to split your earnings between two or three accounts. You take advantage of this option, by setting an automatic transfer up the day after you get paid. This way you’ll have money set aside for savings without having to think about it, usually before you even get a chance to see the cash and notice that it’s missing.
Join a Savings club
Enrolling in a savings club is a smart way to spend money and save money at the same time. Many grocery stores, restaurants, travel companies and other firms offer complimentary savings clubs to encourage customer loyalty. Joining these plans, and planning your shopping around the items that are on sale, can save you some money every time you shop there. Consider joining other savings clubs, too, at the stores you frequent. With the right savings club, you can enjoy eating out more or better vacations without worrying about draining your savings account.
Look for assistance for single moms.
As a single mom, you need to know of the financial aids and grants available. The goal of the grants is to help single moms get the money they need so they can not only raise a family properly but save. The support comes in forms of federal loans, grants and scholarships through many local and state government agencies, as well as several private organizations and not-for-profits. Single mothers should go online and find suitable ones for their situation.
Saving plans for single moms
By simply following the main strategies outlined above, you can start saving more. Every day, do something different and in a way that contributes to you saving more money in the long term. Here are some saving plan ideas you should try.
52-week Money Saving Challenge
The plan aims to save the dollar amount for each number of the week you’re on in the year. Week 1 save $1, week 2 save $2, and so on. By the time you are on week 52, you’ll put in your final $52 and will have accumulated $1,378.
If looking to save more money, you can try the 52-week double money challenge, where you double the dollar amount of each week and will save $2756 by year-end.
This plan is so flexible that you can also reverse the plan and start with saving $52 on week 1, $51 on week two, until the last week of the year where you will save $1.
3 dollars a day.
In this saving plan, you need three jars or piggy banks. The first jar; label it as your savings, the second jar label as investing and the third jar label it Charity.
Each day dedicate $1 to each bank. Do this for 90 days. If $1 is too challenging use 10 cents, 50 cents, whatever you can afford to dedicate to your savings. The same goes for if $1 a day is too easy, try $10 per day, you should always feel challenged in this saving plan. If $10 per day is to easy, make it $100 and so on.
When you have completed the 90-day challenge, re-evaluate your goals, if you can afford to challenge yourself further by increasing the amount of money you save into each jar. Continue with the challenge, but do not lower your amount. Remember, the main goal of a savings plan is consistency.
Save Various Dollars
This is a fun plan where you can save the amount of dollar corresponding to the day of the week. That is Monday save $1, Tuesday save $2, Wednesday save $3, Thursday save $4, Friday save $5, Saturday save $6, Sunday save $7. Do this every day, and at the end of the year, you will have saved $1,456.
This saving plan includes a group of friends with similar saving goals and create a contest that rewards the person who saves the most over a designated period of time. This saving plan not only does it motivate all parties, but it encourages accountability for spending. Be creative and have fun!
It is a universal rule that everybody needs to be saving at least 10% or more of their income. After you have considered your monthly expenses, you should be saving at least 10 percent of your total income per month.
The 50/30/20 rule
This plan is about spending 50% of your income on needs, 30% on wants and save 20%. The main thing about this plan is to understand what a “need” is and what a “want” is in order to budget for your money properly.
A need is what is essential for life, such as groceries, utilities, rent. While wants are expenses that you can do without such as entertainment or a new handbag. The good thing about thing savings plans it is flexible, and you can adjust it to suit your lifestyle. Whatever ratio you choose, remember that savings must be made.
A savings App
With the rapid evolution of mobile apps in different categories, you can now find a mobile app that makes savings completely autonomous. Some of the popular Apps include
This app works by assessing your income and expenses. Once the app has identified a specific trend, it will automatically deposit your savings into an account based on the amount of money left after your expenses have been paid.
This app is suitable for single moms, who have difficulties in depositing savings themselves. The app is free for the first 100 days but a monthly fee will be deducted thereafter.
Acorns is not only a saving app but also an investment app. If you are looking for a simple way to save that will allow for more investment options, Acorns is the app to choose.
This app is for single moms who want to accumulate savings fast. Stash will deposit your savings into investments that will help you to achieve your desired goals. You can start saving with a little a $5.
What are your favorite saving plans for single moms?
With all these saving plans for single moms, saving money should now be a breeze. Just choose one that suits you best and make sure you stick to it and monitor it regularly since you are working towards your financial goals.
Do you have more tips for saving plans for single moms? Let a comment below to let us know!