Budgeting Help for Single Moms
Single moms are always trying to make ends meet. Learning to make the most of the funds you have requires making and sticking to a budget. There are a lot of single moms who do not know how to even begin to set up a household budget. These are things that are no a part of the normal high school curriculum.
Single mothers are a great majority of the parenting population and they are increasing daily. They are the ones working one, two, and sometimes even three minimum wage jobs. A lot of people think that the subsidy from the government in the form of ADC and Food Stamps should be enough but the fact is it only provides for the basics. A single mom receiving these subsidies is only barely living at poverty level. It may not be much but learning how to manage it could make all the difference.
The first step is to find out just where the money is actually going. By keeping a spending journal for one month you will be able to see what you are spending on and what you could do without. You will need a chart and for that you can check out http://singleparents.about.com/library/Calculator/bl_budget_calculator.htm, they have a detailed budget calculator. it takes into account all your possible expenditures like rent, utilities, food, clothing, entertainment and a host of other things. It also has space for income received. It is important that you list all sources of income to get a clear and accurate picture. You will then subtract your income from your expenses this will give you the total amount of your cash over or short.
When you total is in the negative you have to then do some reassessing of the expenses to see where you can make adjustments. Utilities can run pretty high and a lot of people think that there is nothing they can do about it but pay it. This is simply not so. If you go down to your utilities company armed with your budget, it is possible that they can work out a plan that let’s you make set monthly payments. These payments may not cover the entire monthly bill but as long as you make them on time each month you will be assured of continued utility service. This will change the amount you entered into the utilities bracket in your budget.
Next take a look at what you spend on entertainment. Maybe you have cable with a lot of frills, why not settle for basic cable or free over the air television. This will save you hundreds of dollars a year. If you must have cable get the cheapest package available. This will also change the bottom line. What about credit card debt. If you use them to make purchases stop. If you cannot pay cash you really should not buy it. Call each individual credit card company and hammer out a deal for repayment of the balances. It is plausible that you can get the balance frozen, this would mean no more accruing and lower payments. Sometimes if you can come up with a goodly portion of the debt you can settle the account outright.
Budgeting After Divorce
Being divorced is the start of a whole new way of thinking about you, your home and your life. It can also be a frightening time for you and your children. Emotions are raw and the change affects you on every level, especially finances. Now you are a single mom and all the pressures of running the household land squarely on your shoulders. It is time to take a good hard look at your expenditures. You will need to create a budget that you can live with. If you got the house in the divorce and the mortgage is very high it may not be the best place for you at the moment. If you cannot afford the mortgage on it you would do well to consider selling it and moving into a smaller more affordable home. You must also look at the vehicle you are driving. If it is not paid for how much of your income goes to make payments and pay the insurance. You may also need to downgrade the vehicle to get a better handle on your finances. This may sound a bit drastic but if you want to live a good life and provide for your family a lot of the frills that were affordable, as a two-paycheck household may have to go.
Make use of the budget calculator and find out just how much of your income is being spent on food, clothes and shelter. There are things that are considered to be fixed cost, these do not change for instance mortgage and car payment. Any loans or credit card payments are also considered fixed cost. Food clothing and entertainment are the variables, these change all the time. You want to have the lowest possible fixed cost at this point and also to cut back on some of the non-essential variable spending.
How To Make Budgeting Work For You
It is all well and good to put this thing on paper but the true test comes when its time to stick to it. You will have to be firm with yourself, say no to that latte or expensive lunch. Take a bag lunch instead. Getting motivated is easy staying motivated is the hard part. One of the ways to remain motivated is to concentrate on getting one small item paid off and this will give you the incentive to continue. Give yourself a lot of little rewards along the way, nothing extravagant just a movie or a night out, inexpensive of course.
Budgeting also entails cutting back on usage. Walk to the corner store instead of driving. Take the bus sometimes to save on gas. Make all payments on time so that you will not have the added expense of a late payment fee. This holds true for your checking accounts as well. The overdraft fees on one check can get into the hundreds very easily. Get DVD’s from the library instead of renting them. They are free at the library. Shut off lights when you are not using them. you will be amazed at the savings. Use the Crockpot more often. This marvelous device can cook an entire meal all while you are at work. Eating out cost a whole lot more than preparing a delicious and nutritious meal at home.
Take the money you save on eating out and start a savings plan. This should be your “rainy day fund”. Keep this for emergency use. The best fund should be around a thousand dollars. If you save the cost of a meal roughly around 25.00 for forty weeks you will have this fund in the bag. It is all about wants versus needs. There comes a time when the needs have to be on the back burner and as a single mother your needs are to take the best possible care of your family. Note you can also get quite a few good budgeting for single moms tips at singlemom.net.
Grocery Budgeting
Living on a budget also means that you should explore cutting costs in every area. Groceries can take a big chunk out of the household budget. The first step to making a great grocery budget is to plan your meals. Make menus for all meals and stick with the menu. Once you have your menu you can then proceed to find the products that you need at a low cost. Try using generic products instead of name brand. The vegetables and fruits are just as nutritious as the name brand ones and for a whole lot less. Keep a list of the things you use most often such as toilet paper, toothpaste and soap. These items are frequently on sale and you can find coupons for them all the time. If you buy some of the items that are used all the time every shopping trip you will always have some on hand.
Buy in bulk and things when things go on sale. This will stretch your dollar even further. There are also websites such as http://www.mygrocerydeals.com/index.cfm?fuseaction=site.dspHome, that allow you to find out what is on sale in your local stores. You can also go to the website of your favorite grocers to see if they have printable coupons on the items that you use the most.
Future Spending
A budget should not be viewed as a tool for hard times it is a tool that can be useful for your entire life. Budgeting allows you to plan for today with an eye on the future. A single mother must always have an eye in both zones. You cannot predict what is ahead by budgeting and saving you can stay out of debt and have a less stressful life.
You might think that on your income it will be impossible to save but this is a false truth. You can save even if it’s only a few dollars a month. One of the first things you should do is to learn to always pay yourself.
Each period pay yourself something. This can go into your savings account. Five dollars a month or week will eventually add up to something that you can use to make investments. Talk with a financial counselor you can contact them free at certain local agencies. The YMCA has such services. Also the local urban league and HUD offices can offer you budgeting assistance along with financial planning services.
Conclusion
As a single mother getting the most out of the income that you do receive. Once you make a credible budget you can see your way to a brighter future.
