The financial burden a single mother bears is a heavy one. Single mothers are responsible for maintaining the household, paying all of the bills, feed and clothing the kids, and trying to save whats left. Sometimes it’s hard to determine how much money you should be saving. There are no set rules and the amount that a single mother is able to save will vary in different situations.
Regardless, single mothers should have financial goals to help build a strong financial foundation. Here are some possible money saving goals for single moms and a plan to reach them.
How to Determine How Much Money to Save
If you don’t have a budget then the first thing you need to do is set one up. It doesn’t need to be anything fancy. Just look at your past bank statements and group like expenses into categories. All you are looking for here is how much money you spend every month and where it goes.
This will give you an idea of how much you need to get by and the areas that you are spending too much money in. Once you know your monthly expenses calculate your monthly take home pay. If your expenses are more than your income, your goal needs to be getting the two in line. You need to either cut your expenses, earn more money, or do both.
If you are in the green then you need to set a savings goal for the difference. Then each month as you get better with budgeting you can gradually increase that goal.
If you have quite a bit left over or are up for a challenge, then consider trying to save a certain percentage of your income. For instance right now with my savings goals combined I should be able to save 25% of my gross income. Shoot for a number that you think you can hit but will still be somewhat of a challenge.
Making Individual Money Saving Goals
Now comes the fun part where you get decide where your hard earned money will go. I highly recommend that you do save for emergencies, after all your are depending on yourself. I think it is a good idea for a single mom to have an emergency fund that will cover one years worth of expenses .
After you have some sort of emergency money then you decide where to put your money. Your money saving should be aligned with your priorities.
Possible Savings Goals
- Vacation Fund
- Car Fund
- Down Payment for a house
- Business Savings
You are the one working hard for your money and responsibly saving it so make sure you are putting in the place that makes the most sense to you.
Make saving fun and be proud of yourself for what you can do. Don’t feel the need to compare yourself to anyone else. We are all in different financial situations and different places in our lives. As long as you are doing the best that you can do, good things will come your way.