A goal is
not always meant to be reached; it often serves simply as something to aim at.
Bruce Lee
What I would like to focus on are
some basic money management practices I utilize as a single mom. I know managing money is a challenge for
anyone, but there is something about being a single mom that adds to the
responsibility of money management. In
my case I am the sole provider for my son.
I have not started receiving child support, nor do I plan on including
that as income if I do. It is what I
will use to begin an account for my son’s education and I may also use it to
help build an emergency income account as well, since if something happens and
I am unable to work I want to know I will be able to provide for him.
So here are the things that I
have found that are helping me stay on track. I think that most of these will
work for anyone, regardless of the amount of your income.
- MAKE A BUDGET every month and stick to it. If you make out a budget and can see where all your money is going, you’re less likely to buy those little things here and there that end up making you short on money at the end of the month. Be realistic and make sure you do give yourself some “fun money”, if you can afford it, for a burger or to buy a cute top, just know how much you have to spend and don’t spend anymore.
- PAY THE SAME AMOUNT ON YOUR UTILITIES EVERY MONTH. I pay $100 for my electricity, $30 for my gas, and $65 for my water. This works better than averaging your bill if your trying to budget because it is the same regardless of usage. Right now I think I probably have a credit showing on my gas bill for this month. This works because if you are paying more when the bill is less, then your building up credit for when you bill goes higher due to the seasons and hopefully you will never have to pay more than that amount! If you take your bills over the last 6-12 months and average them, then add $20 to that amount you should be pretty safe, or you can call your electric and gas companies and ask them what the payment would be if you changed to average bill pay and then add $20 to the amount they say your bill will fluctuate around. My electric usage averaged over the last 12 months was around $85.
- START SAVING! This is so important. You should have an emergency savings account that you do not touch unless you have no other choice, with a minimum balance of $500, but ideally $1000. It will be tough saving it up, I know, but it will be a lifesaver when you have a blowout, or your car breaks down, or you or your child gets sick or you get laid off and can’t work for a week. Make sure when your doing your budget you keep in mind, you might have to sacrifice for awhile in another area in order to get this built up, but once you reach a certain amount you can redistribute SOME of that money if you need to. The main thing is that you put SOMETHING in that account every month regardless of the balance.
- USE CASH! It makes your money more tangible and real to you and you will be more reluctant to blow it on just anything. I must admit I have not done a great job at this, but in general I try not to swipe my debit card for much. I do have a cool little deal on my checking account that rounds every purchase I make with my debit card up to the next dollar and puts the difference in my savings. So I am saving while spending, however, I would not recommend it unless you are able to manage it properly. As a rule the following should always be paid for in cash that has been designated for that expense, (ie. Groceries, fun money, sundries, etc.) Dave Ramsey suggests the envelope system and I think that is a great way to manage the different areas of cash expenses.
- DO NOT BUY WHAT YOU CANNOT AFFORD! Do NOT use credit cards. Do not get loans for anything other than a mortgage or a USED vehicle loan with a term 4 years or less. If at all possible get that car paid off ASAP! If you find you want something you do not have extra cash for then save up for it after you have contributed to your emergency fund and paid all your other monthly expenses.
- If you have lots of debt then seek advice, get rid of
it, you CAN DO IT! I highly recommend looking into Dave Ramsey’s
I know at this point your
thinking, gee that sounds great, good for you, I could never do that. YES YOU CAN! All you have to do is find your
motivation, focus on that and push forward. Sometimes you will feel like your
doing the whole one step forward, two steps back, but KEEP PUSHING! It will
work and you will be better for it. My
goal is pay off my car and save up enough money in the next 5 years for a down payment
on a bigger home that will fit my son and I and then to have that paid off in
another 5-7 years so that within 10 - 12 years I will be completely debt free
with nothing more than monthly bills to worry about.
Remember, goals aren’t always
meant to be achieved; sometimes we will fly by them and hit something even
bigger, sometimes we will come up short, but still WAY ahead of where we would
have been otherwise. The reward is in
the doing, not the achieving. Your
reward in learning to manage your finances is that you will have less stress,
more security and more time to enjoy your life.
Here are a few things the bible
says about managing finances:
Owe no one
anything, except to love each other, for the one who loves another has
fulfilled the law.
The rich rule over
the poor and the borrower is the slave of the lender.
For the love of
money is a root of all kinds of evils. It is through this craving that some
have wandered away from the faith and pierced themselves with many pangs.
I hope that some or all of this
will help all you independent and strong single mommies become even more
self-sufficient and stable. I am excited
about discovering all this great advice and guidance and that I have scripture
to teach me how to be Godly with my finances.
“Every good and
perfect gift is from above, coming down from the Father of the heavenly lights,
who does not change like shifting shadows.”
James
1:17
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