Kiddipedia Financial Support Information
As a single parent, saving money can feel like a daunting task. With all the everyday expenses plus raising rent prices and interest rates, it may seem impossible to put money aside for the future. However, there are several strategies you can implement to start saving money as a single parent.
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Create a Budget
The first step towards saving money is creating a budget. When you go from often two incomes to one, there may be lifestyle changes that need to be made. And the first step is looking at how much money you have coming in, and what your expenses are. Knowing how much money you have coming in and going out each month will allow you to make informed decisions about your spending habits moving forwards. Start by listing all your monthly expenses, including rent or mortgage, utilities, groceries, transportation, and childcare. Then, compare your expenses to your monthly income to determine how much money you have left over. If you have money left over, use this amount to determine how much you can put towards savings. If there is no money left over, or if you are spending more than you have coming in, adjustments need to be made. This can be done by either cutting costs in some areas, or finding additional sources of income. This process can be overwhelming, and a bit if a reality check. But the sooner you do this, the better for your financial future.
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Cut Costs
Once you have created a budget, you can begin to look for ways to cut costs. You can do this even if you have money left over each month. You may be able to find cheaper alternatives for groceries, shop at cheaper stores for clothing, or reduce your bills. Maybe you don’t need ALL the streaming services, or maybe you never use that gym membership anyway. See what you can cut out altogether or identify areas where you can cut back on your spending and put that money towards your savings goals.
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Do an Audit on your Bills
A review, or annual audit, of bills is an excellent way to save on monthly costs to get some extra money into your savings pool. Ring around to get quotes on health insurance policies, energy providers, phone and internet providers etc. Maybe you can get a cheaper deal on other subscriptions too? It never hurts to ask!
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Set Savings Goals
Goals are important to provide focus, clarity and a direction moving forwards. The same applies to financial goals! Setting savings goals will give you something to work towards and help keep you motivated. Whether it’s saving for a deposit on a new home, an emergency fund, or your children’s future education, setting goals will help you prioritise your spending and put money towards what matters most to you. Don’t forget to write down why you want to set that goal. The why is going to help you stay focussed if spending temptation arises.
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Look for Discounts
As a single parent, you may be eligible for concession cards and discounts on things like childcare, transportation, healthcare, museums, car registrations and more. Take advantage of any discounts or benefits that are available to you. Additionally, consider shopping during sales to stretch your dollar further.
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Find Additional Sources of Income
If you find it challenging to save money on your current income, look for ways to increase your income. Consider taking on a side job, babysitting when the kids are with their other parent, or selling items you no longer need to bring in extra cash. Every little bit counts and can add up over time.
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Use Cashback sites
There are websites that can help you get cashback if purchasing something through a link on their domain. The key, of course, is to only buy things that you would buy anyway. But you can book holidays, flights, and even groceries through cashback sites and get a percentage of your spending back. Instead of spending that money – add it to your savings account!
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Set up accounts for other spends
I like to look after my finances all year round so that I’m not hit with a big bill that I need to take out of my savings. For example, I put a small sum away in a Christmas account each month so that when Christmas rolls around, I already have all the spending money I need. I also do this for holidays and bills. That way your savings really can be savings!
Although saving money as a single parent may seem like a daunting task, it’s achievable with the right strategies. And so rewarding!! It’s so empowering to know that you are in control of your finances. By using some of these strategies, you can start saving for your future and provide for your children at the same time. Remember, every little bit counts, and any step towards saving is a step in the right direction.
Julia Hasche
Julia Hasche is a CDC Certified Divorce Coach® and CDC Certified Divorce Transition and Recovery Coach®, specialising in working with single mums. She is also a blogger, podcast host, and author. Connect with her on Instagram, Facebook, or via her website.
