Govt. Support For Unemployed Single Mothers
While many single mothers find comfort and freedom in single motherhood, we cannot ignore that total independence comes with its challenges. One of the biggest barriers to getting along as a single mom can be financial planning. Everyone wants financial freedom, but careful long- and short-term planning is essential to achieve this worthy goal. The federal government support for unemployed single mothers.
Developing a good financial plan depends on many factors. These factors include income level, disposable income, your stage in life, your debt burden, and your long- and short-term goals. Debt reduction should be a priority as you work to restore your finances.
Govt. Support For Unemployed Single Mothers
Divorce, separation, downsizing, and even the simple college degree can sway your finances. The best preparation is a strategic financial plan so you can weather any future economic tower oil storms.
Blueprint For A Single Mom’s Success
The first step in financial planning for single mothers is to assess your current financial situation. Create three separate categories: needs, wants, and wants to get the govt. support for unemployed single mothers.
This will give you a clearer idea of what things take precedence over others. Housing expenses like rent, utilities, and student loans are inevitable and should be a top priority.
For example, if you want to change the wallpaper in the kitchen, get the kids an Xbox or those Godiva chocolates, you can wait while you get your finances in order.
Wishes include the new luxury cruise that you dearly wanted to do, the brand new sports car that you got your eye on, or even the ultra-cool playroom for the kids.
This categorized list will help you create a blueprint that will get you where you want to be financially. Over time, you need to deviate from your well-established financial plan on a regular basis.
Paying Off The Debts
A generally good starting point for all single mothers is debt reduction. If your Macy’s card has your paycheck in a headlock or Visa is filling out your Caller ID, this should be your main focus. Even if you haven’t started saving for retirement, paying off debt is a better plan because debt rates are higher and debt is growing faster than savings.
Credit cards derail even the best financial plans. In order to master this unsecured debt, you should focus on paying more than the minimum on each card. Also, pay as much as you can with your credit card with the highest interest rates as it is the fastest growing balance. Try to avoid late fees as any expense. These are dollars that can be used to repay balances.
Saving For An Emergency
You often hear about the need to have an emergency fund. While saving on living expenses for 6 to 9 months is not always easy, it is still important to have a rain day fund. The ups and downs of the economy and rising prices can financially ruin a single mother who is unemployed or underemployed. Not being prepared for a break in income only fuels the fire.
Calculate expenses for your household for 6 – 9 months and start saving gradually. There is no need to feel overwhelmed. Consistent saving will help you achieve your goal faster than you think. One way to do this without having to think about it every time you paycheck.
Have your savings withdrawn directly from your paycheck or bank account and put into a separate emergency fund. Make sure you have easy access to the account in an emergency.
Long Term Goals
Retirement should be a top priority in your long term goals category. The common price for a comfortable retirement 10 years ago was $ 1 million. If you’re a later Generation X’er or Generation Y’er, that price could easily double by retirement age. The way to stay one step ahead of this growth curve is to start saving now so your retirement savings can grow using compound interest.
Some common retirement vehicles are the 401k, IRA, Roth IRA, and mutual funds. Keoghs or SIMPLEs are good choices for the self-employed and small business owners.
Either way, you should consult with a financial planner to determine the most suitable retirement plan for you.
Financial Support For Unemployed Single Mothers
Financial planning can be hard work, especially for unemployed single parents. One way to take the sting out of saving for both short and long term goals is to put it on autopilot.
Many employers allow you to split your income between two or three accounts.
If you take advantage of this option, you don’t have to worry about the money burning a hole in your pocket. You can also use the offers of your employer. Don’t forget about tuition reimbursement program and 401,000 games as this can offset education expenses and in some cases double your pension contributions.
Some employers also offer scholarship opportunities for their employees’ children. So find out about each benefit that you are entitled to. Also, consider putting a portion of your tax refund directly into your emergency fund so that it grows faster.
Getting your financial plan in order doesn’t have to be a nightmare. Writing down a plan and sticking to it will make things a lot easier. Once it becomes a routine, you won’t think about it anymore. Now that you’ve taken the steps to efficiently manage your finances, the next step is to increase your income so you have more to manage. Earn from home with Zamzuu. Get your own online shopping.