“Managing a family is an art”
And not all are artists the same. Because it is definitely a challenging yet lovable task to change a well-built house into a love-filled home. Both partners have equal roles in sharing the responsibilities. The responsibilities may be financial management, taking care of kids, and provisional and cooking management. It is also important to keep in mind about future, by reserving a separate amount when an emergency situation arises. Reserves like insurance, policies, and deposits also make the family run smoothly when a need such as higher education or marriage comes. So, managing a family is equally tedious as managing a concern.
When this is the situation for families with both partners, imagine a family which has only a single parent. He/she has to take charge of everything from top to toe. It lies as a burden in the head of the single parent. When the single parent is economically sound, it is no issue. But problems arise when they are lagging in money. Because, it is ultimately money, that matters. Let us discuss a few tricks to manage financially when unexpected scenarios hit a family making the partners split as single parents.
Set an achievable target
Being a single parent, at most planning is essential. It must not end only with planning. But a proper execution is essential. Every year beginning set up a portfolio of targets with an achievable timeline. It can be investing in a scheme that yields greater returns, renting an unused space, investing in gold, buying real estate, or reselling unused vehicles/stocks that produce means of earning. It is also essential to make sure that the targets are achieved on time. Anything pending by the year-end needs proper work out to avoid any lagging in the upcoming years.
Sense your second income
Single parenting means single income. The source of income will be the same throughout his/her lifetime. So, it is high time the person should set a source of secondary income. Because, during times of contingencies like higher studies of your child and medical emergencies, this alternative source of money acts as a backup. It can be working part-time on weekends, mentoring students in the evenings to guide them on subjects, etc
Setting up your budget
When you are a single parent, it is mandatory to know where your single penny goes into. Because, when you are earning hard, each and every penny matters. So, it is always good to jot down what your sources of income are, how much you received, and the date of payment in your account. Similarly, the expenses made as groceries, school fees, electricity bills, vehicle maintenance, and fuel consumption must be listed in a day-to-day manner. This enables sorting and balancing income and expenditure. Several applications are now available to automatically track your expenses and income when details are entered.
Keep your debts at bay!!
Your debts are the ones that make you or break you. Particularly, when you are a single parent, try to minimize your loans part. If your debt is nil, you are in a safer zone. Life is not always a bed of roses. Unavoidable circumstances may occur. But then, try to minimize bad loans, which means ones that you can’t repay. Bad loans affect our reliability. So, borrow as per your income level. Don’t go overboard and lose your credibility.
Debts include credit cards as well. Credit cards are silent money stealers. They may look attractive but when paid over a period of time with high amounts, you have nothing left for tomorrow. So stay alert with those fancy cards that make your pockets empty!!
How to plan your debts?
In case you have multiple debt payments, a sense which needs immediate closure. Multiple payments may be like, for example, debts got for marriage expenses, a home loan, a car loan, or other minor EMIs for purchasing your house equipment. List down which can be covered easily and which takes time to close. Cover the one loan that can be easily paid and finish it off by placing a full stop. Because instead of dragging multiple loans over a long period of time by paying in small amounts, it is always best to pay a whole amount to close a debt account. That way we can concentrate and “make money work for us; instead of working for money”
Sit with your child
Finally, when things go beyond your hands, it is always best to sit with your children and discuss. Because they are definitely ‘A mini version of you’. Make them realize ‘which expense is needed. And which expense can be postponed?’ They can understand you very well and support you more than an outsider. They will definitely admire you as a living ‘role model’ by seeing your effort as a single parent. So don’t misjudge your little support system. They will feel proud of whom you are. Instead of saying a “NO”, try to convince those little human beings in your home at the moment and postpone it for a while.
Ultimately, it is the right of every human to live a happy life. So, don’t go overboard and stress yourself. Because at the end of the day, everybody deserves to live an amazing life that is carefree with happy smiles on their offspring’s faces.