The current economic climate presents enormous challenges for most families; for the single mum, there is an additional strain on an already stretched budget.
In Nigeria, single mothers often face unique challenges with alimony and child support often not enforced following a fractured relationship, and an often unsympathetic or even hostile extended family following the demise of a spouse or partner. Indeed, many single mums worry about how they will manage on one income, and how to ensure that should anything happen to them, their children will be taken care of. Here are some tips to consider:
Do you have clear goals in place? With all the decision-making lying at your feet, you do need to have clear short, medium and long-term financial goals. Short-term might be to pay off some of your debts, build up some emergency savings.
Medium and long-term goals may include buying a home for yourself and the children, investing in their education and your retirement.
Assess where you stand financially. Do you have any savings or investments at all? You may have received a large sum of money from a divorce settlement or a death benefit, retirement or inheritance. Don’t make any hasty decisions about the money; place it in a short-term money market instrument for say 90 days whilst you seek professional advice to determine the next steps.
Budgeting takes on a new meaning, where there is only one income to support a family. It is a tested tool that keeps one in control of your finances if you stick to it.
Your priorities are likely to include your mortgage or rent, school fees, utility bills, food, clothing, childcare, vehicle expenses, insurance and of course, savings. Can you cut back at all?
Look at your utility bills for example; is there any way you can reduce them? If you are in debt, deliberate steps should be made to reduce it, particularly the high interest debt. Paying close attention to how you spend over a month or two will help you plan systematically towards your financial goals.
Do you have an Emergency Fund? Without a second income to fall back on, many single mothers can be quite vulnerable in an emergency. Whilst support from the extended family and friends is welcome, it is advisable not to rely upon it totally as they might have challenges as well. Children and aging parents fall ill, or there may be car or home repairs to worry about; it is impossible to predict such events. Automate your savings and set aside about six months of expenses in an interest bearing money market account in anticipation of this.
Where will you live? One of your priorities should be to find a secure and affordable place to live. It can be tempting to try to maintain an expensive home that may have been funded by your ex or that relied upon two incomes to sustain it.
Whilst your desire may be to live in a decent home in a safe environment, or keep your children in an expensive school, be sure that you can afford to live where you choose to live. Sometimes, it is better to “downsize” for the short term, than to try to maintain standards at all costs. Don’t put yourself under unnecessary pressure; just stay focused on the big picture and not what the Joneses will say.
Don’t overindulge your children. Many single parents are tempted to do everything possible to keep children happy and content; try not to balk under the pressure to provide for their every whim; this only leads them to develop a sense of entitlement and brings even greater challenges with their upbringing and damages your finances.
There is so much peer pressure in our materialistic society. If you are clearly focused on your goals, you will be less likely to be derailed by perceptions or what others are doing or what they will say.
It is your responsibility to provide them with their needs but not all their wants. As they get older you can begin to involve them; have an honest discussion regarding the family finances including paying off debt and goals. As early as appropriate, encourage them to start to learn how to earn and save some of their own money through holiday jobs and internships. It makes them more responsible and they get to understand the value of money.
tiwasblog.co
Must Read!! Money tips for single mums
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