Divorce can be costly, so it’s always good to plan ahead financially. Still, adjusting to single parent finances can be a bit of a challenge. There are a few things to keep in mind which can help you with making this change…
Single Parent Finances
Manage child support
Child support can be an important part of single parent finances. If you’re receiving child support, then that extra income can be quite useful. Keep in mind, though, that like the name implies, it should be used to help your kids. Keep track of any payments, because many payers tend to fall behind.
If you’re paying child support, be sure to keep a record of every payments. That includes when you made them, and for how much. That way, if disputes arise, you’ll have receipts which can help you avoid late fees and other penalties.
Work on your savings
Everyone knows that they should set aside money in their savings. However, not everyone always does so. It might be because they feel like they don’t have enough left over to save. Or, it could also be that they think it won’t matter in the long run.
The truth is, savings can be very important for your single parent finances. Plus, you don’t have to start your savings with a crazy amount. Just an extra $50 a month can be enough. The important thing is to start saving consistently now, so you’ll be better prepared in the future.
Pay bills on time
Bills tend to be a big drain on single parent finances. While they can be costly, you don’t want them to become even more expensive by missing a payment. Those pricey late fees will sink even more money into these bills and out of your savings. Therefore, you should always make these payments on time.
A good way to do this is by setting up automated bill payments. Many companies will let you schedule your payments in advance online. That way, you can ensure they get paid on time every time. This will not only save you money, but the headache of remembering to pay each bill.
