One of the challenges of being single is in planning a budget. This is partly because you don’t have a spouse to bounce ideas off of, have to make your own decisions on where the money goes, and bear the burden and responsibility for all your mess-ups. On the other hand, you don’t have to ask anyone’s opinion before you buy something, or worry about the taxes you would pay if you had to include your spouse’s income. Whether good, bad, or indifferent, the single person’s life holds some challenges, especially when it comes to budgeting.
Here are some tips to make it easier.
1) Pay yourself first
I know you have heard this before. But if you do this, you will find more money building up over time, money that you can count on to be there in a crunch. Married people have their spouse’s income to dip into if the going gets touch. You don’t. So plan as though there might be some setback in the future and take at least 10% of your monthly income off the top to put in the bank for emergencies and investing later.
2) Start a savings plan and stick with it
When you are paying yourself first, plan out a savings plan that you can stick with. If you cannot afford the 10%, start a savings plan any way. You may have to start small but even if it is only $10 a month, you will have that in the event of a financial emergency down the road.
3) Shop smart for groceries–less is more
Unlike people who are shopping for a family, you only have to shop for yourself, and an occasional night when you may have guests over for dinner. Shop smarter by buying smaller portions, such as individual serving sized canned foods, fruits, and so forth. This will save a lot of money in the long run and will be less wasteful too.
4) Reduce and pay off debt
This is a lofty goal, especially if you have a lot of excess debt from your college days, youthful spending, and other things. But it is a goal worth having. The sooner you can pay off debt, the sooner you can start on the road to financial freedom. Think in terms of freeing up as much money as possible as soon as possible. Then you can start to increase the areas of your financial life you wish to spend more on. As long as you are in debt, your money is tied up.
5) Resist the temptation to shop
Even though you will have to shop some, don’t make it a hobby. It was my hobby when I was in college and now I am in my 40’s and still paying for clothes that are gracing a landfill somewhere. Don’t make shopping a past time. Do it when you need something, occasionally when you want something, after you have saved the money to pay for it in cash. Don’t use credit any more than you have to. Avoid the pitfalls that got you into that predicament years ago. Think carefully before you “charge it.”
6) Increase income
Look for opportunities to increase your income. Sell something. Take a second job, even if it’s only for a little while. Have a yard sale. Anything you can do to bring more money into your life means extra cash and that’s power.
7) Consider purchasing disability insurance
Even if you think you are in perfect health, are not accident prone, or likely to have a qualifying disability, purchasing disability insurance is a smart thing to do. That’s because it will pay a portion (sometimes up to half) of your actual salary in the event you cannot work due to illness or accident. This is a valuable extra layer of security for the single person whose livelihood depends on one income.
8) Save for the future
This goes without saying, but it is the most important. Many times, single people get so caught up in survival that they fail to plan or think about the future. But it’s important. Laying aside just a little money for your future security and goals is one of the most important steps you can take. So make sure to make it a priority.
If you follow these steps, you will be practicing some of the most important aspects of having financial security, recommended by some of the top experts in Finance. Charles Givens once said, “It’s not how much you make, it’s how much you save that creates wealth.”
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